The 30-share index rose by 204.65 points or 0.80 percent at 25,826.82 in early trade. All sectoral indices, led by realty, PSU, oil & gas and banking, were in positive zone with gains of up to 1.25 percent.
The gauge had lost 97.41 points in yesterday's volatile session.
The National Stock Exchange index Nifty scaled the 7,800-mark by surging 66.20 points, or 0.85 percent, to 7,854.30.
Stock brokers said fresh positions created by participants ahead of key economic data -- industrial production (IIP) numbers for July and consumer price inflation (CPI) for August -- to be released later in the day, contributed to the rise.
Moreover, a mixed trend at other Asian bourses and overnight gains on the US markets, positively impacted sentiments, they added.
Among Asian markets, China's main Shanghai Composite Index fell 0.09 percent, Hong Kong's Hang Seng up 0.68 percent while Japan's Nikkei shed 0.05 percent in morning trade today.
The US Dow Jones Industrial Average ended 0.47 percent higher in yesterday's trade.

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