Mumbai: The BSE benchmark index Sensex on Tuesday rose by 83 points in early trade on selective buying by funds as well as retail investors ahead of Reserve Bank of India's monetary policy review later in the day.

The 30-share benchmark index, which gained over 13 points on Monday, rose further by 83.09 points, or 0.50 percent, to 16,834.82 points.

In a similar fashion, the wide-based National Stock Exchange Nifty index moved up by 14.65 points, or 0.29 percent, to 5,060.90 points.

Banking, capital goods, consumer durables and oil and gas stocks were leading the rise in opening trade.

Brokers said expectations of a cut in Cash Reserve Ratio (CRR) in its monetary policy review by RBI later today, helped trading sentiments to improve.

Meanwhile, in Asia, Japan's Nikkei rose by 0.56 percent, while most of other bourses are closed for public holiday.