The gauge had lost 205 points yesterday following the Reserve Bank's decision to leave interest rates unchanged and raised the inflation forecast for the remainder of the current fiscal to 4.3-4.7 per cent.
Also, the NSE Nifty recovered by over 50 points to reclaim 10,100 mark.
Major gainers were Tata Steel, L&T, Hero MotoCorp, Adani Ports, Bajaj Auto, Maruti Suzuki, Hindustan Unilever, Bharti Airtel, NTPC, Power Grid, Axis Bank, SBI and ICICI Bank, rising up to 1.32 per cent
Brokers said buying by domestic institutional investors (DIIs) and a firm trend at other Asian bourses improved the market sentiment.
DIIs had bought shares worth Rs 995.11 crore, while foreign funds sold shares to the tune of Rs 1,217.92 crore yesterday, the provisional exchange data showed.
In the Asian region, Hong Kong's Hang Seng was up 0.10 per cent while Japan's Nikkei gained 1.27 per cent in early trade today. Shanghai Composite Index, however, shed 0.52 per cent.
The US Dow Jones Industrial Average ended 0.16 per cent down yesterday.