Mumbai: The BSE benchmark Sensex gained over 125 points in opening trade on Thursday, extending Wednesday's gains on continued foreign capital inflows amid a firming trend overseas.

The 30-share index rose by 125.68 points, or 0.74 percent, to 17,084.07 on the back of strengthening banking, auto, IT and consumer durable stocks. The index had gained 421.92 points in the previous session.

In a similar fashion, the wide-based National Stock Exchange Nifty index moved up by 37.55 points, or 0.73 percent, to 5,136.95 in opening trade.

Brokers said the trading sentiment was bullish, in tandem with a firming trend overseas on hopes that euro zone leaders will be able to hammer out a solution to the debt crisis that has cast a shadow over the region.

Banking stocks were in the limelight on hopes that the government would take steps to boost slowing economic growth. The Bankex rose by 0.90 percent in the opening trade.

In the Asian region, Hong Kong's Hang Seng Index gained 1.66 percent, while Japan's Nikkei was up 1.15 per cent percent in morning trade. The US Dow Jones Industrial Average closed 0.90 percent higher on Wednesday.