Mumbai: Extending gains for the third straight day, the BSE benchmark Sensex rose by over 140 points in early trade on Tuesday on sustained buying by funds and retail investors, tracking a firming global trend.

The 30-share barometer, which gained nearly 420 points in the last two sessions, rose further by 140.20 points, or 0.80 percent, to trade at 17,618.35.

All sectoral indices, led by metal, banking and IT, were trading in positive zone with gains of up to 0.68 percent.

The wide-based National Stock Exchange index Nifty also moved up by 43.25 points, or 0.81 percent, to 5,361.15.

Brokers said continued buying by funds and retail investors amid a firming trend in Asian markets, following overnight gains in the US markets on strong manufacturing data, bolstered the trading sentiment.

Meanwhile, in Asia, Hong Kong's Hang Seng Index rose by 0.57 percent, while Japan's Nikkei index was up by 0.41 percent.

The US Dow Jones Industrial Average gained 0.40 percent in Monday's trade.