** India's stock benchmarks Nifty 50 .NSEI and Sensex .BSESN lose 0.3% each, dragged by lower IT stocks after the U.S. Fed's rate pause and a fall in auto stocks on Maruti Suzuki's MRTI.NS quarterly profit miss

** Both Nifty and Sensex gained 1% in last two sessions, with sentiment supported by the India-EU trade deal

** Half of 16 major sectors decline; IT companies .NIFTYIT, which earn a major share of revenue from the U.S., fall 1.5%; Fed kept policy interest rate steady overnight and investors are not expecting any rate cut till June

** High U.S. rates make emerging markets such as India less attractive for overseas investors

** Auto index .NIFTYAUTO falls 1.7%, with Maruti Suzuki MRTI.NS losing 3% after posting lower-than-expected quarterly profit, hurt by a one-time charge due to new labour code and higher raw material costs

** Broader small- .NIFSMCP100 and mid-caps .NIFMDCP100 fall 0.3% and 0.6%, respectively

** Larsen & Toubro LART.NS gains 3.2% despite missing profit estimates as multiple brokerages reiterate constructive view on the stock, citing long-term earnings growth

** Gland Pharma GLAD.NS jumps 7.1% on quarterly profit rise

(Reporting by Bharath Rajeswaran in Bengaluru)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))