INDIA STOCKS-India's stock benchmarks open higher on hopes of progress in US trade talks

Sept 10 (Reuters) - India's equity benchmarks opened higher on Wednesday, extending their rally, fuelled by hopes of progress in trade talks with Washington, while recent tax cuts and firming expectations of a U.S. rate cut supported sentiment.

The Nifty 50 .NSEI rose 0.49% to 24,991, and the BSE Sensex .BSESN indexes gained 0.5% to 81,504.36, respectively, as of 09:15 a.m. IST.

The Nifty has gained about 1.2% in the last five sessions, and is trading about 5.4% below the record high hit on September 27, 2024.

All 16 major sectors logged gains at the open. The broader small-caps .NIFSMCP100 and mid-caps .NIFMDCP100 gained 0.5% each.

Geopolitical risks, however, resurfaced after U.S. President Donald Trump urged European Union officials to impose 100% tariffs on China and India as part of a strategy to pressure Russia, according to a U.S. official and an EU diplomat.

But Trump also indicated that the U.S. could boost trade with India, citing ongoing discussions to reduce barriers.

Prime Minister Narendra Modi said he is looking forward to speaking with Trump, and that the two countries were working to conclude trade negotiations at the earliest.

($1 = 88.1670 Indian rupees)