Mumbai, Oct 29 (IANS): A benchmark index of Indian equities markets surged 282.42 points or 1.37 percent during the afternoon trade Tuesday as the Reserve Bank of India (RBI) increased repo rate, a key policy interest rate, by 0.25 percent to 7.75 percent.

All the stocks were trading in green and the rally was led by banking index (bankex), metal, auto and consumer durables sectors.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 20,593.49 points, was trading at 20,852.70 points during the afternoon session, up 282.42 points or 1.37 percent from previous day's close at 20,570.28 points.

The Sensex touched a high of 20,881.82 points and a low of 20,493.66 points during trade so far.

The S&P BSE bankex gained 423.54 points, metal index augmented by 202.75 points, auto index gained 189.25 points and consumer durables index moved up by 93.22 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) also surged 102.70 points or 1.68 percent at 6,203.80 points.