The 30-share barometer rebounded by 96.72 points, or 0.50 per cent, after yesterday's losses, to 19,420.52.
All the sectoral indices were trading in the positive territory with gains up to 0.86 per cent.
Similarly, the wide-based National Stock Exchange index, Nifty moved up by 32.15 points, or 0.54 per cent, to 5,902.25.
The Sensex had yesterday fell by nearly 94 points on fag-end selling on growth concerns.
Brokers said fresh buying by participants amid a firm trend in the Asian region on hopes of a last-minute deal to avert the US fiscal cliff mainly led the recovery on the domestic bourses here.
In the Asian region, Hong Kong's Hang Seng index rose 0.35 per cent, while Japan's Nikkei gained 0.71 per cent in early trade. The US Dow Jones Industrial Average ended 0.14 per cent lower in yesterday's trade.
