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The 30-share index recovered by 36.44 points, or 0.19 per cent, to 18,720.87 points. It had lost almost 467 points in the previous two trading sessions.
The broad-based index National Stock Exchange moved up by 10.10 points to 5,614.40 points.
Brokers said bargain buying by funds investors in select stocks which turned attractive at prevailing lower levels, helped the Sensex to trade higher.
Stocks of technologies and oil and gas sectors were in better shape on fresh buying support.
On global front, the US Dow Jones Industrial Average ended marginally higher by 0.04 per cent in yesterday`s trade, while Japan`s Nikkei shed 0.15 per cent in the morning trade today.