The 30-share index rose 73.78 points, or 0.35 per cent, to trade higher at 21,216.79 points with stocks of auto, healthcare, capital goods and metal sectors rising.
The Sensex had lost 50.57 points in the previous session.
During 2013, the 30-stock index shot up nearly 9 per cent, while Nifty rose almost 7 per cent.
The broad-based National Stock Exchange index Nifty rose 13.30 points, or 0.21 per cent, to 6,304.40.
In the Asian region, Hong Kong's Hang Seng index rose 0.36 per cent, while Shanghai gained 0.70 per cent in early trade today. Japan's Tokyo Stock Exchange is closed today for a public holiday.
The US Dow Jones Industrial Average closed at another record high of 16,504.29, up 0.16 per cent, in yesterday's trade.
