The 30-share barometer, which had lost 98.15 points in the previous session, recovered 81.43 points, or 0.30 percent, to 26,834.33 with the sectoral indices led by capital goods, banking, healthcare and realty were trading in positive zone with gains up to 0.52 percent.
Also, the National Stock Exchange index Nifty, regained the 8,000-mark by rising 20.60 points, or 0.26 per cent, to 8,012.30.
Brokers said sentiments turned better as funds and retail investors made fresh buying, tracking a mixed trend on other Asian markets ahead of US Federal Reserve's monetary policy meet.
Besides, expectations of encouraging earnings from more companies also supported the recovery, they said.
Among other Asian markets, Hong Kong's Hang Seng rose 0.20 percent, while Japan's Nikkei was trading 0.17 percent down in morning trade.
US Dow Jones Industrial Average ended 0.07 percent up in Tuesday's trade.