A strong reading in the rupee, rising by over 20 paise against the dollar in early trade, also supported the gains.
The 30-share index, which had lost 381.95 points in the previous session, recovered by 184.23 points or 0.72 per cent to 25,666.75 points.
All the sectoral indices led by auto, consumer durables and capital goods rose up to 1.04 per cent.
Similarly, the NSE Nifty rose by 60.75 or 0.78 per cent to 7,792.55 points.
In other markets in Asia, Hong Kong's Hang Seng rallied 1.06 per cent while Japan's Nikkei uptick 1.03 per cent and Shanghai composite index edged by 0.10 per cent.
The US Dow Jones Industrial Average ended 1.42 per cent higher in yesterday's trade.
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