Mumbai, Sep 16 (IANS): A benchmark index for Indian equities markets fell sharply around noon Friday soon after the central bank announced a 25 basis points increase in the repo rate, but recovered within an hour to trade higher.

About an hour into trade, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,047.73 points, fell over 232 points from the day's high, soon after the Reserve Bank of India announced the hike in the repo rate.

The index, however, recovered quickly enough and was trading at 17,058.46 points, up 181.92 points or 1.09 percent from its previous close at 16,876.54 points.

Interest rate sensitive stocks like realty and banking had led the fall, soon after the central bank's announcement. This was the 12th such hike by the RBI since January 2010.

The 50-scrip S&P CNX Nifty of the National Stock Exchange too was followed a similar trajectory and was trading higher at 5,123.2 points, up 0.94 percent at this time.

The markets had largely factored in the rate hike and also took strength from a positive opening at European bourses Friday.