Besides, further strength in the rupee and widening of positions by participants ahead of the RBI's bi-monthly monetary policy review, to be released later today, influenced the sentiment.

The 30-share index rose by 100.12 points, or 0.37 percent, to 26,877.57 with the sectoral indices, led by auto, banking, power, realty, metal and consumer durables, trading in the positive zone with a gain of up to 0.64 percent.

The gauge had lost 65.69 points in the previous two sessions.

The NSE Nifty also moved up by 29.40 points, or 0.36 percent, to 8,230.45.

Brokers said a firm trend at other Asian markets following overnight gains at the US markets after Federal Reserve chief Janet Yellen said the economy was still in good shape and that any increase in borrowing costs would be slow and low, bolstered the trading sentiment here.

Among other Asian markets, Hong Kong's Hang Seng was up 0.80 percent, Japan's Nikkei went up by 0.36 percent and Shanghai Composite index soared by 2.18 points in morning trade today.

The US Dow Jones Industrial Average ended 0.64 percent higher in yesterday's trade.

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