By Vivek Kumar M and Bharath Rajeswaran
(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 rose 0.02% to 25,531.7 points, while the BSE Sensex 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 and mid-caps were up 0.5% and 0.1%, respectively.
FMCG stocks rose 0.5%, led by Hindustan Unilever and Varun Beverages 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 were down 0.5% ahead of sector major Tata Consultancy Services’ 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 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 slipped 3.5% as its first-quarter profit plunged due to fewer orders.
(Reporting by Vivek Kumar M and Bharath Rajeswaran in Bengaluru; Editing by Sumana Nandy and Mrigank Dhaniwala)
