INDIA STOCKS-India's benchmarks dip as IT drags ahead of TCS earnings

By Bharath Rajeswaran

July 10 (Reuters) - Indian equity benchmarks were subdued on Thursday, weighed by losses in information technology stocks ahead of Tata Consultancy Services' earnings, as investors stayed cautious amid lingering uncertainty over a potential U.S. trade deal.

The Nifty 50 .NSEI fell 0.19% to 25,423.15 points and the BSE Sensex .BSESN lost 0.16% to 83,389.06 as of 10:12 a.m. IST.

The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 traded flat.

Eight of the 13 major sectors logged losses.

IT companies .NIFTYIT fell 0.7%. TCS TCS.NS, which is set to report first-quarter results after market hours, fell 0.5% at the open before erasing losses.

Analysts expect TCS, the first to report among its peers, to log a "soft" first-quarter as revenue is likely to remain subdued due to certain project ramp-downs and client-specific challenges.

"If the final U.S. tariffs are pushed on the consumer, U.S. inflation will rise, which is injecting continued uncertainty for global corporations and could drag growth in IT," said Girish Pai, analyst at BOBCAPS.

Asian markets inched higher, tracking overnight gains on Wall Street after U.S. President Donald Trump issued final tariff notices to seven minor trading partners. Earlier this week, the president also indicated that a deal with India was near. MKTS/GLOB

"With trade and tariff news feeling more routine these days, market is trading in a narrow range, bracing for the start of earnings season," said Vikram Kasat, head of advisory at PL Capital

Steady fund inflows could support the market's floor, but a breakout above 25,500 for the Nifty needs earnings support as the U.S.-India trade deal is partly priced in, according to two analysts.

Among individual stocks, power financiers REC RECM.NS and Power Finance Corp PWFC.NS rose around 2% after Morgan Stanley began coverage with an "overweight" rating, citing benefits from the energy transition and stable asset quality.

House financiers such as Home First Finance HOME.NS, Aadhar Housing Finance AADA.NS and Aptus Value Housing APTS.NS gained after Bernstein initiated coverage on all three with "outperform".