INDIA STOCKS-Indian equity benchmarks dip as IT pullback outweighs growth optimism

By Bharath Rajeswaran and Vivek Kumar M

May 30 (Reuters) - Indian benchmark indexes edged lower on Friday, as weakness in information technology stocks, pressured by renewed uncertainty over U.S. tariffs, outweighed optimism ahead of domestic growth data due later in the day.

The Nifty 50 .NSEI nudged 0.33% lower to 24,755.75, as of 10:27 a.m. IST, while the BSE Sensex .BSESN traded 0.24% lower at 81,433.74.

IT companies .NIFTYIT, which derive a significant portion of their revenue from the United States, dropped 1% after an appeals court temporarily reinstated the most sweeping of President Donald Trump's tariffs.

A U.S. trade court had blocked the duties on Wednesday, citing presidential overreach.

Ten of the 13 major sectors logged losses. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 fell 0.2% and 0.1%, respectively.

"Tariff-related volatility continues to cloud sentiment, but the near-term risk-reward in Indian markets appears balanced," said Anil Rego, founder and fund manager at Right Horizons PMS.

The Nifty has gained around 2% so far in May, on track for its third straight monthly advance, as strong institutional inflows and sequential improvements in corporate earnings helped the benchmark indexes withstand geopolitical and trade-related headwinds.

Further gains will depend on the strength of corporate earnings, the upcoming GDP data, and the Reserve Bank of India's policy decision next week, Rego said.

India's economic growth likely picked up pace in the January–March quarter, driven by stronger rural demand and increased government spending, despite cautious private investment amid global uncertainty.

Among individual stocks, Bajaj Auto BAJA.NS fell 2.3%. While the two-wheeler maker reported a profit beat in the March quarter, it also warned that any further delays in securing the supply of rare earth magnets from China could "seriously impact" electric vehicle production by July.

Ola Electric OLAE.NS lost 6% after the electric scooter maker projected a revenue decline for the ongoing June quarter, following a wider loss in the March quarter.