REFILE-INDIA STOCKS-IT, metals weigh on India benchmarks as tariff worries outweigh growth optimism

By Bharath Rajeswaran

June 2 (Reuters) - Indian equity benchmarks fell on Monday, as losses in information technology and metals stocks on U.S. tariff-related uncertainty outweighed optimism from stronger-than-expected domestic growth.

The Nifty 50 .NSEI dipped 0.65% to 24,588.50, while the BSE Sensex .BSESN fell 0.72% to 80,865.54 as of 10:08 a.m. IST.

Global trade concerns resurfaced after U.S. President Donald Trump threatened to double tariffs on imported steel and aluminium to 50% from June 4, reigniting U.S.-China trade tensions.

The Nifty Metal index .NIFTYMET dropped 0.7%, while IT stocks .NIFTYIT, which have a high U.S. exposure, slid 1%.

Broader sentiment remained weak, with eight of 13 sectoral indexes in the red. Index heavyweights HDFC Bank HDBK.NS and Reliance Industries RELI.NS lost 1.5% each and ICICI Bank ICBK.NS shed 0.8%, further weighing on the benchmarks

The selloff overshadowed upbeat March-quarter economic growth data, driven by construction and manufacturing.

Despite robust domestic growth, U.S trade policy uncertainty remains a key overhang for markets as Trump's tariffs on steel and aluminium signal further turbulence, said VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Among individual movers, Mphasis MBFL.NS fell 3.1% after a report said the IT company lost long-time client FedEx, which contributed 8% of its revenue.

Niva Bupa Health Insurance NIVA.NS slumped 11%—its steepest drop since listing—following a block trade worth $126 million at an 11% discount, according to IFR.

In contrast, Apollo Hospitals APLH.NS gained 2.5% after beating fourth-quarter profit estimates, supported by strong demand for healthcare services. AstraZeneca Pharma India ASTR.NS rose 8.7% after it reported a sharp profit surge in the March quarter.

While benchmarks were subdued, the broader, the more domestically focussed small-cap .NIFSMCP100 and mid-cap indexes .NIFMDCP100 reversed early losses to trade about 0.4% higher.

Schloss Bangalore SCHL.NS, the owner of luxury hotel chain "The Leela", debuted 6.7% lower.