Investors appeared optimistic ahead of quarterly earnings of some key companies, including IT major TCS which is scheduled to release its results later in the day.
The 30-share index was trading higher by 266.97 points, or 0.90 per cent, to 29,680.63 with all the sectoral indices led by metal, oil & gas and capital goods leading the recovery.
The gauge had lost 374.69 points in the previous three sessions largely on weak global cues on rising geo-political concerns.
The NSE Nifty was up 66.10 points, or 0.72 per cent, at 9,205.40 in early trade.
Brokers said value-buying in select bluechips coupled with a mixed trend in other regional markets following positive lead from Wall Street influenced sentiment here.
Among other Asian markets, Japan's Nikkei was up 0.23 per cent, while Hong Kong's Hang Seng down 0.96 per cent in the early deals. Shanghai Composite Index too shed 0.12 per cent.
The US Dow Jones Industrial Average ended 0.90 per cent higher in trade.