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The 30-share barometer, which lost 24.83 points in the previous volatile session, recovered by 145.90 points, or 0.75 per cent, to 19,566.29 in the first few minutes of trade today.
Stocks of auto, IT, metals and healthcare firms led the rally.
In a similar manner, the wide-based National Stock Exchange Nifty index rose by 41.45 points, or 0.71 per cent, to 5,867.50 points.
Brokers said a fresh spell of buying by funds as well as investors of stocks having strong fundamentals and a firming trend on other Asian bourses mainly buoyed the trading sentiment here.
Expectations of strong fourth quarter earnings also fuelled the rally, they said.
In the Asian region, Hong Kong`s Hang Seng index rose by 0.81 per cent, while Japan`s Nikkei gained 0.80 per cent in morning trade today, while the US Dow Jones Industrial Average ended 0.46 per cent higher in the previous session on Friday.