The 30-share barometer, which had lost over 462 points in the previous two sessions, recovered by 69.51 points, or 0.25 percent, to 26,814.20.
Also, the National Stock Exchange index Nifty gained 16.90 points, or 0.21 percent, to 8,019.30.
Brokers said that apart from selective buying by participants, covering-up of short positions by speculators as Thursday being the last trading session of September expiry influenced sentiments.
Besides, a firming trend on the other Asian bourses following a sizable overnight rebound on US markets, also supported the recovery on the domestic markets here, they said.
However, shares of RIL fell 0.26 percent to Rs 962.40 and ONGC plunged 1.83 per cent to Rs 406 after the government on Wednesday postponed a decision on revision of natural gas prices by another 45 days to November 15.
Among other Asian markets, Japan's Nikkei rose 1.22 percent while Hong Kong's Hang Seng was also trading 0.53 percent higher in morning trade.
US Dow Jones Industrial Average ended 0.90 percent up in Wednesday's trade.

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