FTSE flat at midday; defensives, oils offset banks

* Defensives in demand

* Oils higher; BP rallies after recent sell-off * Banks softer as risk appetite retreats

By Tricia Wright

LONDON, July 8 (Reuters) - London's top share index was flat at midday on Wednesday, as strength in defensive stocks and oils was offset by falls in bank stocks.

The FTSE 100 .FTSE was down 1.40 points, or 0.03 percent, at 4,185.60 at 1046 GMT, after touching its lowest level since late April earlier in the session. It closed 0.2 percent lower at 4,187.0 on Tuesday.

The index has gained 21 percent since hitting a six-year low in March, but is still down 5.6 percent for the year.

"There's continuing uncertainty about the outlook for the economy and that continues to weigh on sentiment, even though the economic indicators generally are getting a little bit better," said Darren Winder, head of macro and strategy research at Cazenove.

Good gains were seen from defensive pharmaceuticals, telecoms and tobacco issues as investors bought into assets perceived as safe bets in an extremely risk averse environment.

GlaxoSmithKline (GSK.L) added 1.8 percent, while index heavyweight Vodafone (VOD.L) climbed 1 percent, and British American Tobacco (BATS.L) gained 0.4 percent.

Oil and gas producers were also firmer. BP (BP.L) enjoyed a bounce after a recent sell off, up 1.1 percent, with BG (BG.L) and Royal Dutch Shell (RDSa.L) both up 0.4 percent.

Tullow Oil (TLW.L), meanwhile, shed 0.6 percent after saying it expected first-half revenue to fall 23 percent on lower oil prices. [ID:nL8338920]

Some miners rallied, against a backdrop of mixed metal prices and after a broadly positive note from Citigroup, which raised Rio Tinto's (RIO.L) target price and its recommendation on Antofagasta (ANTO.L) to "hold" from "sell".

Rio Tinto and BHP Billiton (BLT.L) were also boosted by a note from Investec which raised them to "buy" from "hold".

Rio Tinto gained 0.5 percent, Antofagasta added 0.9 percent and BHP Billiton rose 1 percent.

Banks, however, were under pressure, with investors' risk appetite diminished. Barclays (BARC.L) shed 2.3 percent, HSBC (HSBA.L) was off 0.3 percent, Lloyds Banking Group (LLOY.L) fell 0.7 percent and Royal Bank of Scotland (RBS.L) dropped 0.8 percent.