The 30-share index was trading higher by 171.39 points, or 0.64 per cent, at 26,804.52 with all sectoral indices led by metal, auto, realty and banking stocks in the green.
The gauge had lost 10.11 points in the previous session.
Besides, the NSE Nifty reclaimed the 8,200-mark by recovering 51 points, or 0.62 per cent, at 8,241.50.
Brokers said local shares got a leg-up from value-buying in blue-chips and a firming trend in Asia boosted by overnight gains in the US. The US shares rose after minutes of Federal Reserve’s December meeting signalled a less aggressive stance on rate hike.
Hong Kong’s Hang Seng index rose 1.11 per cent and Shanghai Composite 0.09 per cent in their early trade. Japan’s Nikkei was up 0.05 per cent.
The US Dow Jones Industrial Average ended 0.30 per cent higher yesterday.
PTI