In early trading, the domestic equities indexes saw modest declines.

In early trading, the Nifty reached the day's high of 24,394.45 and then stayed below the 24,300 level. For the third straight trading session, financial services shares continued to decline.

The S&P BSE Sensex, the barometer index, fell 347.52 points, or 0.43%, to 80,334.67 at 11:29 IST. At 24,252.35, the Nifty 50 index dropped 83.65 points, or 0.34%.

The S&P BSE Small-Cap index dipped 0.33% and the S&P BSE Mid-Cap index fell 0.22% in the overall market.

The breadth of the market was negative. 2,209 shares declined and 1,585 shares increased on the BSE. 136 shares all remained unaltered.

Buzzing Index:

At 24,243.30, the Nifty Financial Services index fell 1.04%. Over the course of three trading sessions, the index dropped 2.56%.

HDFC Bank (down 1.12%), ICICI Lombard General Insurance Company (down 0.95%), State Bank of India (down 0.91%), Bajaj Finserv (down 0.80%), REC (down 2.61%), Power Finance Corporation (down 1.50%), ICICI Bank (down 1.40%), Axis Bank (down 1.25%), Multi Commodity Exchange of India (down 1.22%), and HDFC Asset Management Company (down 0.73%) all saw declines.

However, SBI Cards & Payment Services (up 0.08%) and Muthoot Finance (up 0.64%) also somewhat increased.

International Markets:

As investors anticipated the Federal Reserve's final interest rate decision of the year, most Asian shares rose on Wednesday, ignoring slight drops on Wall Street. Given the possible impact of suggested policies that could rekindle inflationary pressures, the market is closely watching the Fed's outlook for the upcoming year, even if a 25 basis point rate cut is generally expected.

In November, Japan's trade balance surprisingly improved because to stronger-than-expected exports fueled by a cheaper yen and greater demand from China and the United States. To 117.6 billion yen ($770 million), the trade deficit shrank.

The IT sector saw a minor retreat from recent gains as US indices fell Tuesday as investors remained cautious ahead of the rate announcement. The Dow Jones Industrial Average closed 0.6% lower at 43,449.90 points, the NASDAQ Composite dropped 0.3% to 20,108.30 points, and the S&P 500 dropped 0.4% to 6050.61 points. Alphabet lost 0.5% while NVIDIA Corporation fell 1.2%. 

In the meantime, data revealed that US retail sales increased by 0.7% in November, surpassing projections. Despite issues like inflation and high interest rates, this solid number indicates that the economy and consumer spending are still doing well. A strong labor market and secure household finances support this strength.