* FTSE 100 down 1.5 percent
* Banks, commodities slide
* Rexam top blue-chip gainer after update
By Tricia Wright
LONDON, Nov 16 (Reuters) - Britain's top share index fell sharply on Tuesday, led by banks and mining stocks, with investor sentiment knocked by concerns over Irish debt and further tightening of monetary policy in China.
By 1217 GMT, the FTSE 100 was down 84.92 points, or 1.5 percent, at 5,735.49.
Euro zone finance ministers will try to find a way out of Ireland's debt crisis on Tuesday, with Dublin resisting calls that it seeks a state bailout by contending that only its banks may need help.
Banks were under pressure, with Lloyds Banking Group and Standard Chartered worst off, shedding 2.8 percent and 2.7 percent respectively.
Elsewhere among financials Man Group was a big faller, off 4.4 percent, with traders saying that its flagship AHL fund was having a tough week.
"Concerns surrounding Ireland I think are impacting heavily on market sentiment and all companies, I suppose, are feeling the pain," Peter Dixon, economist at Commerzbank, said.
"The miners may take a bit of a hit if and when the Chinese economy slows down so you've got all sorts of other factors coming into play," he said.
Mining stocks took the most points off the blue chip index, following metals prices lower, on fears of interest rate hikes in China, the world's biggest consumer of metals.
Further dampening the mood, inflation in Britain rose unexpectedly to a four-month high in October, forcing Bank of England Governor Mervyn King to write another public letter explaining why inflation remains so far above target.
REXAM STANDS OUT
Rexam was the standout FTSE 100 gainer, adding 2.8 percent after the drinks can maker said it expected its second half results to be in line with its expectations, prompting Seymour Pierce to repeat its "buy" rating on the stock.
"The tone is one of steady improvement rather than euphoric optimism but the rating discount is unjustified," the broker said in a note.
Positive broker sentiment helped Capita Group, up 1 percent, with Numis Securities lifting its rating on the outsourcer to "buy" from "add", ahead of a trading update on Thursday.
Meanwhile, AstraZeneca climbed 0.7 percent as investors welcomed news it may sell its Astra Tech dental implant and medical devices business for some $2 billion, giving it more cash for share buybacks in 2011.
U.S. stock index futures pointed to a lower opening on Wall Street on Tuesday, ahead of U.S. October producer prices data and U.S. October industrial output figures, scheduled for release at 1330 GMT and 1415 GMT respectively.
Investors were also waiting for quarterly results from Wal-Mart Stores Inc, the world's biggest retailer. (Editing by Elaine Hardcastle)