The 30-share barometer, which had lost 42.29 points on Monday, recovered by 63.95 points, or 0.31%, to 20,398.22, led by gains in auto, tech, consumer durables and
capital goods sector stocks.
On similar lines, the National Stock Exchange index Nifty moved up by 15.45 points, or 0.26%, to 6,068.90.
Brokers said besides a firming trend in the Asian region which is in line with overnight gains in the US markets, expectations of better industrial production (IIP) data for December, mainly triggered buying by funds and retail investors.
Among other Asian markets, Hong Kong's Hang Seng was up by 0.21% in early trade. Japan's markets are closed today for a public holiday.
The US Dow Jones Industrial Average ended 0.05% higher on Monday.