The 30-share index, which had lost 27.86 points in the previous volatile session, rose 77.80 points, or 0.27 per cent, to 27,887.15.
FMCG, oil & gas, PSUs, realty, banking, consumer durables and capital goods led the recovery.
State-owned SBI was trading 2.02 per cent higher at Rs 295.20 ahead of its quarterly earnings.
On similar lines, the NSE Nifty was up 19.35 points, or 0.22 per cent, at 8,440.35 in early trade.
Brokers said emergence of buying by participants following another record close on US markets as rate hike expectations eased influenced sentiment here.
Among other Asian markets, Japan’s Nikkei rose 0.03 per cent while Hong Kong Hang Seng gained 1.42 per cent in early trade today.
PTI