Mumbai: The BSE benchmark Sensex rose by over 114 points in the opening trade on Tuesday on sustained buying by funds and retail investors ahead of possible hike in lending rates by RBI to tame inflation.

The BSE 30-share index, which gained 153.64 points on Monday, rose further by 114.48 points or 0.67 percent, to 17,053.762 points with stocks of banking, IT, metals and realty sectors leading the rise.

Similarly, the wide-based National Stock Exchange Nifty index moved up by 18.75 points, or 0.37 percent, to 5,117.10.

Brokers said increased buying by funds helped Sensex to rise, even as the Reserve Bank of India may increase interest rates on Tuesday to check rising inflation at its monetary policy review later.

They said firming trend on the other Asian bourses in line with overnight gains at the US market on renewed efforts by the European leaders, to limit the euro zone debt crisis, generated buying by funds on the domestic bourses here.

Meanwhile, in Asia, Hong Kong's Hang Seng Index was up by 0.50 percent, while the US Dow Jones Industrial Index closed 0.89 per cent higher on Monday.