CANADA STOCKS-TSX flat after strong gains in prior session

(Updates with morning prices)

By Nikhil Sharma

March 20 (Reuters) - Canada's main stock index was flat on Thursday as investors took a breather a day after the index logged its biggest advance in over seven months as the U.S. Federal Reserve projected further rate cuts for the year.

The Toronto Stock Exchange's S&P/TSX composite index was up 0.04% at 25,077.49.

Political developments were in focus after the Globe and Mail reported that Canadian Prime Minister Mark Carney is poised to call a snap federal election for April 28.

Among index sectors, healthcare and consumer discretionary led the gains on Thursday, adding 1% and 0.3% respectively.

Capping gains, the materials lost 0.4% as it tracked lower gold prices.

"What we're seeing is the time where markets are kind of steadily declining and then every once in a while you get a big relief rally and then you kind of resume this decline," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

"That's something we're seeing this morning after we had this big pop yesterday afternoon."

The benchmark index ended about 1.5% higher on Wednesday after the Fed provided a less hawkish outlook than some investors had feared.

The U.S. central bank kept its

interest rates on hold

and projected two more quarter-point cuts by the end of this year.

The policymakers, however, lowered their economic growth outlook for this year and raised inflation projections as they assessed uncertainty from U.S. trade tariffs.

The

Bank of Canada

last week had also raised concerns about inflationary pressures and weaker growth stemming from trade uncertainty after President Donald Trump's tariffs.

On Thursday, investors will look out for BoC Governor Tiff Macklem's speech at 1705 GMT.

In economic data, producer prices in Canada rose by 0.4% in February from January on higher prices for primary non-ferrous metal products, as well as energy and petroleum products.

Among individual stocks, Wesdome fell 5.5% after the gold miner reported quarterly results.

(Reporting by Nikhil Sharma in Bengaluru; Editing by Sahal Muhammed)