Mumbai, Oct 25 (IANS): A benchmark index for Indian equities markets Tuesday was ruling steady ahead of the Reserve Bank of India's second quarter policy review with analysts saying bourses had already price in a 25 basis point increase in rates.

The 30-scrip sensitive index (Sensex) of the BSE, which opened at 17,012.79 points, was ruling day at 17,025.49 points, up 0.51 percent or 86.21 points from its previous close at 16,939.28 points.

The policy review is scheduled at 11 a.m. Tuesday.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was ruling 0.51 percent or 26 points higher at 5,124.35 points.

There was good buying support in IT and telecom stocks. Consumer durable stocks led the losers pack.

At the broader markets, the BSE midcap index fell 0.38 percent, while the smallcap index was trading 0.37 percent down.

The RBI largely expected to hike key interest rates for the 13th time since January 2010, with the consensus being that it would be a 25 basis points increase this time around.

In the macroeconomic review released Monday the RBI said that economic growth for 2011-12 will be lower than its earlier projection of 8 percent even as inflation remained "sticky" and was negatively impacting investment and industrial production.

The central bank admitted that the choice between containing inflation and pushing growth was not an easy one and that "policy choices have become more complex".