Mumbai, Feb. 2 -- The key equity benchmarks reversed all gains and traded with small cuts in the early afternoon trade, extending their Budget Day losses. Major indices, which had opened modestly higher on Monday, turned lower as investors assessed the federal budget, which fell short of expectations on measures to boost foreign investment and ease trading costs.

The Nifty traded below 25,750 mark. PSU Bank shares declined for previous two consecutive trading sessions.

At 11:28 ST, the S&P BSE Sensex, fell 114.20 points or 0.14% to 80,606.51. The Nifty 50 index fell 102.30 points or 0.41% to 24,723.15.

The broader market underperformed the frontline indices. The S&P BSE 150 MidCap Index fell 1.23% and the S&P BSE 250 SmallCap Index dec...