Besides, a firming trend in other Asian markets, tracking rallies in the US and Europe as oil prices pushed up, buoyed sentiment here.
The 30-share barometer spurted 316.77 points or 1.20 per cent to 26,621.40 with sectoral indices, led by realty, IT, teck, auto, oil & gas and PSU, recovering up to 1.40 per cent.
The gauge had lost 1,213.05 points in previous two days to nearly six-month low after fears of acute cash crunch arising out of demonetisation played out amid capital outflows by foreign funds.
The NSE index Nifty recaptured the 8,200-level by climbing 101.60 points or 1.25 per cent to 8,210.05.
