Mumbai, Dec. 8 -- The key equity benchmarks traded with modest losses in the morning trade as investors navigated a week heavy with IPO activity. With the Reserve Bank of India's policy outcome fully absorbed by the markets, participants turned cautious ahead of the U.S. Federal Reserve's upcoming rate decision. A rate cut is widely anticipated, prompting traders to keep risk exposures contained until greater policy clarity emerges.

The Nifty traded below the 26,100 level. Realty shares declined after advancing for previous two consecutive trading session.

At 10:30 ST, the barometer index, the S&P BSE Sensex tanked 239.40 points or 0.28% to 85,472.97. The Nifty 50 index lost 91.30 points or 0.37% to 26,090.20.

The broader market underp...