The BSE Sensex rebounded about 153 points in opening trade on Thursday on fresh buying in IT, teck, capital goods and healthcare counters amid mixed overseas cues.
Buying by domestic institutional investors and strengthening rupee also supported the recovery, brokers said.
Asian stocks traded mixed amid caution over US-China trade relations. US stocks closed higher on Wednesday after minutes from the Federal Reserve's meeting reassured investors that the central bank will not be too aggressive with raising interest rates.
The 30-share Sensex rose 152.81 points, or 0.44%, to 34,497.72