INDIA STOCKS-Indian equity benchmarks muted as FMCG gains offset losses in IT stocks

By Vivek Kumar M and Bharath Rajeswaran

July 9 (Reuters) - India's equity benchmarks were little changed on Wednesday as gains in fast-moving consumer goods stocks were offset by losses in IT stocks, while investors continued to remain on the sidelines amid uncertainty over U.S. tariffs.

The Nifty 50 .NSEI rose 0.02% to 25,531.7 points, while the BSE Sensex .BSESN gained 0.01% to 83,726.51, as of 10:26 a.m. IST.

Seven of the 13 major sectors were down. The broader, more domestically focussed small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 were up 0.5% and 0.1%, respectively.

FMCG stocks .NIFTYFMCG rose 0.5%, led by Hindustan Unilever HLL.NS and Varun Beverages VARB.NS after Jefferies said the stocks are its "contrarian" picks in India's consumer sector.

"We see limited downside but a meaningful upside in case of a (turnaround)," it said. Hindustan Unilever rose 1.1% and Varun Beverages was up around 2%.

Meanwhile, IT stocks .NIFTYIT were down 0.5% ahead of sector major Tata Consultancy Services' TCS.NS earnings on Thursday.

On Tuesday, Trump said he would impose a 50% tariff on imported copper and roll out long-threatened levies on semiconductors and pharmaceuticals, widening a trade war that rattled global markets.

The U.S. will "pretty soon" slap a 10% tariff on imports from BRICS nations, Trump said, putting India directly in the crosshairs.

"Markets are at an inflection point clearly. There is expectation of relative gains from a favourable trade deal with the U.S.. Add to that, earnings are seen improving on lower base in the June quarter," said Naveen Kaushik Rajan, senior director and portfolio manager at Windmill Capital.

The pharma index .NIPHARM slipped 0.3% at the open but bounced back to rise 0.4%, as fears over Trump's proposed 200% tariff on drug imports were offset by the offer of a one-year window for manufacturers to shift production to the U.S.

Among individual stocks, 5Paisa Capital PAIS.NS slipped 3.5% as its first-quarter profit plunged due to fewer orders.