The benchmark BSE Sensex recovered over 300 points in afternoon trade on Thursday on value-buying by participants amid positive global cues.
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The 30-share barometer spurted by 316.57 points. The gauge had lost 937.82 points in the previous three sessions.
The NSE Nifty rose above 7,800 mark.
Brokers said buying at prevailing low levels amid a firming trend at some Asian markets provided support to the market.
Among other Asian markets, Japan's Nikkei was higher by 1.42 per cent in early trade today while financial markets in China and Hong Kong are closed today for a public holiday.
The US Dow Jones Industrial Average ended 1.82 per cent higher in yesterday's trade.