Mumbai, Apr 18 (IANS): A benchmark index for Indian equities markets was trading 89 points or 0.51 percent higher Wednesday, a day after the Reserve Bank of India (RBI) announced the cut in interest rates.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,447.26 points, was ruling 17,446.75 points around 2.30 p.m., up 0.51 percent or 88.81 points from its previous close at 17,357.94 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was trading 0.54 percent or 28.60 points higher at 5,318.30 points.

There was good buying support in interest rates sensitive consumer durables, auto and bank stocks. The country's largest lender State Bank of India was ruling 0.35 percent higher or 8.05 points at Rs.2308.00.

The BSE banking index was trading 57.70 points higher at 12,181.54 points. Consumer durables index too came out with healthy performance with a rise of about 74.72 points at 6,765.79. Auto index rose by 182.87 points at 10,554.40.

Auto companies were some of the biggest gainers as the rate cuts are expected to positively affect the sectoral sales. Some of the biggest gainers included Tata Motors, whose scrip grew by 8.40 points or 2.79 percent at Rs.309.85, and Bajaj Auto, which increased by 45.10 points or 2.70 percent at Rs.1,718.20.

The midcap index of the BSE was up 54.71 points while the smallcap index was ruling 54.66 points higher.

The RBI Tuesday in its annual monetary policy for 2012-13 had cut some key rates by 50 basis points in a bid to push industrial growth and stimulate economy -- a move that may also see interest rates falling on housing, automobile and commercial loans.

Announcing the monetary policy for the current fiscal, RBI Governor D. Subbarao said the repurchase rate was being cut by 50 basis points to 8 percent, which will automatically see the reverse repurchase rate also drop to 7 percent from 7.5 percent.