Mumbai, Jul 30 (IANS): A benchmark index of Indian equities markets rallied over 1.5 percent in the afternoon trading Monday, led by strong buying support in interest rate sensitive banking, realty and capital goods stocks, ahead of monetary policy review by the central bank.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened in the positive at 16,919.14 points, was trading at 17,093.07 points in the afternoon session, up 1.51 percent or 253.88 points from its previous close at 16,839.19 points.

The wider 50-scrip S&P CNX Nifty of the National Stock Exchange was ruling 1.50 percent or 76.25 points higher at 5,176.10 points.

There was a strong buying support in interest rate sensitive banking, realty, auto and capital goods stocks.

Banking index of the BSE was ruling 2.52 percent higher at 11,926.71 points. Capital goods index was up 2.49 percent, realty index was ruling 2.22 percent higher and auto index was up 1.89 percent.

The country's largest lender State Bank of India was ruling 3.56 percent higher at Rs.2,010.25. ICICI Bank was up 3.75 percent at Rs.963.

Tata Motors, up 3.48 percent at Rs.220.20; L&T, up 2.95 percent at Rs.1,358.90; Infosys, up 2.57 percent at Rs.2,204; and Sun Pharma, up 2.28 percent at Rs.644.70, were among the major Sensex gainers in percentage term.

Of the 30 Sensex scrips only one was in the red. Wipro was down 1.57 percent at Rs.329.

The Reserve Bank of India is scheduled to announce first quarter review of the monetary policy Tuesday.

While, some analysts are betting on 25 basis points (0.25 percent) cut in key policy rates, majority of them feel that the central bank was not in a position to cut rates given the current macro-economic situation.

In the mid-quarter review announced last month, the central bank had left key policy rates unchanged after cutting the rates by 50 basis points in April.