The 30-share barometer gained 105.36 points, or 0.51 per cent, to 20,642.00. The index had lost 186.33 points in the previous session.
On similar lines, the National Stock Exchange Nifty moved up by 32.35 points, or 0.53 per cent, to 6,123.80.
Brokers said fresh buying by funds and retailers driven by a firming trend in the Asian region following overnight gains in the U.S. markets helped trading sentiment to improve.
Meanwhile, among other Asian markets, Hong Kong’s Hang Seng index rose by 0.93 per cent, while Japan’s Nikkei was up by 2.02 per cent in the early trade.
The U.S. Dow Jones Industrial Average ended 0.58 per cent higher in yesterday’s trade.