Besides, a firming trend at other Asian markets influenced trading sentiment.
The 30-share barometer recovered sharply by 340.45 points, or 1.27 per cent, to 27,217.93, with all sectoral indices led by auto, healthcare and banking trading in the positive terrain with gains up to 1.80 per cent.
The gauge had plunged 629.82 points in yesterday’s trade on concerns that key reforms Bills may get delayed.
On similar lines, the National Stock Exchange index Nifty recaptured the 8,200 level by recovering 114 points, or 1.40 per cent, to 8,240.95.
Brokers said buying activity emerged on positive economic data, with retail inflation easing to a 4-month low of 4.87 per cent in April, boosting hopes of a rate cut by the Reserve Bank in its policy review next month.
However, industrial output growth slowed to a 5-month low of 2.1 per cent in March.
Among other Asian markets, Hong Kong’s Hang Seng index was up 0.23 per cent while Japan’s Nikkei was trading 0.04 per cent higher in early trade.
The US Dow Jones Industrial Average ended 0.20 per cent lower in yesterday’s trade.
PTI