The 30-share index, which had gained 365.89 points in the previous session, rallied by 226.80 points, or 0.83 percent, to 27,501.51.
All sectoral indices were trading in positive zone with gains up to 1.10 percent.
Also, the National Stock Exchange index Nifty reclaimed the 8,300-mark by jumping 68.70 points, or 0.83 percent, to 8,303.30.
Brokers said value buying in bluechips by participants which became attractive after recent losses and firming trend at other Asian markets amid overnight rally in US as crude oil steadied, buoyed sentiments.
Besides, a substantial gain of 32 paise in the local currency and expectations of encouraging third quarter earnings by Infosys, to be released later in the day, also supported the upside.
Shares of Infosys were trading 1.11 percent higher at Rs 1,996.55 in early trade.
Among Asian markets, Hong Kong's Hang Seng was higher by 1.06 percent, while Japan's Nikkei moved up by 0.51 percent in opening trade.
US Dow Jones Industrial Average ended 1.84 percent higher in Thursday's trade.

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