The 30-share barometer spurted by 455.73 points, or 1.77%, to 26,170.39. On Wednesday, it had lost 317.72 points.

Besides, value-buying in realty, healthcare, auto, metal, banking, PSUs capital goods and oil and gas stocks positively impacted trading sentiment.

The NSE Nifty regained the 7,900-mark by surging 138.95 points, or 1.78%, to 7,930.80 in early trade.

Brokers said short covering by participants, with Thusday being the last trading session of August contracts in the derivatives space supported the market.

A firming trend at other Asian bourses also boosted the bounce back on Sensex. Asian markets gained strength following overnight gains in the US markets after hints that the US Federal Reserve will not raise interest rates next month.

At 1004 hours, BSE Sensex was trading at 26,015.56, up 300.90 points or 1.17% from previous day's close.

The 50-share Nifty was up 7,883.70, up 91.85 points or 1.18% from Wednesday's close.

Among other Asian markets, Shanghai composite Index up 1.12%, Hong Kong's Hang Seng firmed up 2.45%, while Japan's Nikkei higher by 1.89% in early trade.

The US Dow Jones Industrial Average ended 3.95% higher in Wednesday's trade.