Continuing Monday's winning streak, the 30-share index rose further by 61.03 points, or 0.24 percent, to 25,784.19, with all the sectoral indices, led by auto and banking, trading in positive zone with gains up to 0.62 percent.

The Sensex had gained over 242.32 points in the previous session.

The National Stock Exchange index Nifty rose 13.95 points, or 0.18 percent, to 7,697.60 in morning trade.

Brokers said selective buying by cautious funds and retail investors ahead of RBI's bi-monthly policy review later in the day influenced the trading sentiments.

Among other Asian markets, Hong Kong Hang Seng gained 0.32 percent, while Japan's Nikkei was up by 0.21 percent in morning trade on Tuesday.

US Dow Jones Industrial Average ended 0.46 percent higher in Monday's trade.

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