LONDON (Reuters) - Britain's top share index edged higher on Monday though falls among mining companies and banks capped gains, while Ashtead Group (>> Ashtead Group plc) was hit by a broker downgrade.

The blue chip FTSE 100 index <.FTSE> was up 0.1 percent at 7,017.16 points at its close after a choppy session.

The index was led higher by a rise among more defensive stocks, including pharma firms Hikma (>> Hikma Pharmaceuticals Plc) and Mediclinic (>> Mediclinic International PLC), as well as Reckitt Benckiser (>> Reckitt Benckiser Group Plc) and Unilever (>> Unilever plc) as investors took profits in banking stocks <.FTNMX8350>, which gained more than 7 percent last week.

Shares in banking stocks Barclays (>> Barclays PLC), Standard Chartered (>> Standard Chartered PLC), Royal Bank of Scotland (>> Royal Bank of Scotland Group plc) and Lloyds (>> Lloyds Banking Group PLC) were among the top fallers, down between 1.9 percent to 2.8 percent and tracking a broader decline among European banks <.SX7P>.

Analysts said that uncertainty among Italian banking shares, in particular regarding a share issue from troubled lender Monte dei Paschi (>> Banca Monte dei Paschi di Siena SpA), was dampening the sector.

"We're still waiting to hear whether Monte dei Paschi will be successful in that last-ditch attempt to raise the money it needs," Mike van Dulken, head of research at Accendo Markets, said. "Until we get more clarity, the bank sector is going to be a little on edge."

Ashtead Group (>> Ashtead Group plc) dropped 4.8 percent, the top FTSE 100 faller, after UBS downgraded the equipment rental firm to a "sell". UBS analysts said that pricing pressure was rise for Ashtead, and that they saw a limited benefit from any increase in U.S. infrastructure spending.

Shares in mining companies also came under pressure as the price of copper touched a four-week low.

While shares in British mining stocks have rallied around 96 percent so far this year, analysts at Deutsche Bank highlighted an acceleration or deceleration in Chinese consumption as a key risk for the sector.

"We expect cash to be returned to shareholders, but are concerned ‘house-keeping’ capex could start to creep up and new projects could be approved. We doubt that major M&A will make a comeback, and after the 100 percent rally year to date, we now have little upside to our TPs," analysts at Deutsche Bank said in a note.

Outside of the blue chips, shares in utility Drax Group (>> Drax Group Plc) jumped more than 8 percent after an upgrade from SocGen to "buy" from "hold", and the European Commission approved Drax's conversion of a third power plant unit to biomass from coal.

(Reporting by Kit Rees; editing by Mark Heinrich)

By Kit Rees