The 30-share barometer, which had lost almost 485 points in the past five sessions, recovered by 79.79 points, or 0.38 per cent, to 20,773.03 points in early trade today.
All sectoral indices were trading in the positive zone with a gain of up to 0.68 per cent.
Similarly, the National Stock Exchange index Nifty moved up by 22.90 points, or 0.37 per cent, to 6,185.15.
Brokers said fresh buying by funds and retailers driven by a firming trend in the Asian region, following overnight gains in the US markets after strong trade data boosted expectations for US growth, helped trading sentiment to improve.
Meanwhile in Asia, Hong Kong’s Hang Seng index rose by 0.64 per cent, while Japan’s Nikkei was up by 1.04 per cent in early trade today.
The US Dow Jones Industrial Average ended 0.64 per cent higher in yesterday’s trade.