Benchmark stock indices had a positive start on Thursday, taking leads from the final congressional approval of a sweeping U.S. tax revamp.
Buying by domestic institutional investors set the tone, but Asian stocks were mixed.
The Bank of Japan kept its monetary policy steady.
The 30-share index bounced 83.61 points, or 0.24%, to 33,860.99. It had lost 59.36 points in the previous session.
Capital goods, metal, healthcare and realty rallied.
The NSE Nifty also moved up by 29.75 points, or 0.28%, to 10,473.95.
Major movers in the Sensex kitty included Sun Pharma, Hero MotoCorp, L&T and HDFC Bank, rising up to 1.93%.
However, Bank of India fell 1.44% after the Reserve Bank initiated a ‘prompt corrective action’ against the lender due to mounting bad loans, according to a regulatory filing.
The U.S. Dow Jones Industrial Average ended 0.11% lower on December 20.