Mumbai, Sep 16 (IANS): A benchmark index for the Indian equities markets Friday was ruling about 194 points higher even as investors awaited the monetary policy announcement scheduled noon, which is widely expected in another interest rate hike.

About an hour into trade, the 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,047.73 points, was ruling at 17,071.04 points, up 198.9 points or 1.18 percent from its previous close at 16,876.54 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange too was trading higher at 5,128.45 points, up 1.04 percent.

Analysts expect the Reserve Bank of India (RBI) to hike rates Friday when it meets for the mid-quarter review of the monetary policy. This will be the 12th such increase since January 2010.

"The RBI in its previous policy review had surprised the street by raising the repo rate by 50 basis points as against consensus expectations of 25 basis points. We expect the RBI to carry out a final hike of 25 basis points in repo rate for the current interest rate cycle," said a note from brokerage firm Angel Broking.

"The street consensus is also for a 25 basis point hike," it added.

Markets seemed to have factored in the rate hike as they continued to trade higher,

At the BSE broader market indices were also trading higher with the BSE 100 index up 0.94 percent. Oil marketing companies were trading higher after the petrol price hike announced late Thursday evening. Metals and capital goods stocks were among other major gainers at this time.

Asian markets were also ruling higher Friday.