The 30-share barometer rose by 85.41 points, or 0.44 per cent, to 19,378.61, led by stocks of realty, auto and banking sectors. The Sensex had lost 277.24 points in the previous two sessions.
Similarly, the wide-based National Stock Exchange index Nifty edged up by 28.35 points, or 0.48 per cent, to 5,863.60.
Brokers said fresh commitments by participants before the Reserve Bank's mid-quarter monetary policy meeting later in the day and a rebound on other Asian bourses after previous session's steep fall, mainly buoyed the trading sentiment here.
In the Asian region, Japan's Nikkei Index up by 2.02 per cent, while Hong Kong's Hang Seng index gained 0.16 per cent in early trade. The US Dow Jones Industrial Average, however, ended 0.43 per cent lower on Monday.