The 30-share barometer, which had lost almost 485 points in the past five sessions, recovered by 79.79 points, or 0.38 percent, to 20,773.03 points in morning trade on Wednesday.
All sectoral indices were trading in the positive zone with a gain of up to 0.68 percent.
Similarly, the National Stock Exchange index Nifty moved up by 22.90 points, or 0.37 percent, to 6,185.15.
Brokers said fresh buying by funds and retailers driven by a firming trend in the Asian region, following overnight gains in US markets after strong trade data boosted expectations for US growth, helped trading sentiment to improve.
Meanwhile in Asia, Hong Kong's Hang Seng index rose by 0.64 percent, while Japan's Nikkei was up by 1.04 percent.
US Dow Jones Industrial Average ended 0.64 percent higher in Tuesday's trade.


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