Moreover, recovery in the rupee and value-buying in recently battered bluechip stocks influenced sentiments.
The rupee firmed up by 24 paise to trade at 67.78 against the dollar in early trade at the forex market.
The broader NSE Nifty too reclaimed the 7,300-mark.
The 30-share index surged by 240.48 points or 1 per cent to 24,202.69 points.
All the sectoral indices led by metal, power, banking and PSU were trading back in the positive zone, surging up to 1.56 per cent.
The gauge has lost 517.63 points in the previous two straight sessions, bogged down by persistent foreign fund outflows and selling in Asian shares.
The NSE Nifty was trading above the 7,300-mark by recovering 68.20 points or 0.94 per cent at 7,345.00.
Brokers said fresh spell of buying following a firming trend at other Asian markets, tracking overnight gains in the US and European markets on hints of additional central bank stimulus and a rise in oil prices from 12-year lows, boosted the mood.
Yesterday, the Sensex closed at 23,962.21. This was the first below-24,000 closing since May 15, 2014.
Among other Asian markets, Japan’s Nikkei was up 3.59 per cent in early trade today amid speculation that Japan’s central bank is considering taking fresh measures to counter the impact of falling oil prices.
Hong Kong’s Hang Seng was also up by 1.69 per cent but Shanghai Composite index shed 0.28 per cent.
The US Dow Jones Industrial Average ended 0.74 per cent higher in yesterday’s trade.
PTI