The 30-share index, which had lost 492.70 points in the previous two sessions, rebounded by 202.96 points, or 0.71 per cent, to 28,640.67, with stocks of healthcare, auto, capital goods, FMCG and banking sectors leading the recovery.
On similar lines, the National Stock Exchange index Nifty rose 60.65 points, or 0.70 per cent, to 8,693.80.
Brokers said increased buying by funds amid a firming trend in other Asian markets following overnight rally on Wall Street, after tepid US manufacturing data tempered expectations of an early rate hike by the Federal Reserve, buoyed trading sentiments here.
Among other Asian markets, Hong Kong’s Hang Seng was up by 0.66 per cent while Japan’s Nikkei gained 0.86 per cent in early trade today.
The US Dow Jones Industrial Average ended 1.29 per cent higher in yesterday’s trade.