The benchmark BSE Sensex recovered 104 points to 25,879.72 in early trade on Thursday on short-covering by participants on November series expiry in the derivatives contracts and positive global cues.
The 30-share index was trading higher by 103.98 points, or 0.40 per cent, to 25,879.72. The gauge had lost 92.75 points in the previous two sessions.
Markets remained closed on Wednesday on account of "Gurunanak Jayanti".
Besides, value-buying in consumer durables, realty, FMCG, IT and metal stocks positively impacted trading sentiment.
The NSE Nifty rose by 26.75 points, or 0.34 per cent, to 7,858.35 in early trade.
Brokers said short-covering by participants as Thursday being the last trading session of November contracts in the derivatives segment supported the market.
A firming trend at other Asian bourses on easing tensions over Turkey's shooting down of a Russian warplane and broadly upbeat US economic data also sparked buying on domestic markets, they said.
Among other Asian markets, Hong Kong's Hang Seng firmed up 0.92 per cent while Japan's Nikkei moved higher by 0.56 per cent in early trade on Thursday. Shanghai composite Index was up 0.11 per cent.
The US Dow Jones Industrial Average ended 0.01 per cent higher in Wednesday's trade.