Mumbai, Dec. 2 -- The key equity benchmarks traded with minor losses in morning trade amid NSE's F&O contract expiry. Investor focus now shifts to upcoming IPO activity, PMI data and the RBI's monetary policy meeting scheduled later this week. The Nifty traded below the 26,150 mark.

PSU Bank shares witnessed buying demand for three consecutive trading sessions.

At 10:25 IST, the barometer index, the S&P BSE Sensex, declined 347.35 points or 0.41% to 85,294.55. The Nifty 50 index fell 103.60 points or 0.40% to 26,072.15.

In the broader market, the S&P BSE Mid-Cap index shed 0.08% and the S&P BSE Small-Cap index fell 0.32%.

The market breadth was weak. On the BSE, 1,441 shares rose and 2,165 shares fell. A total of 1216 shares were unch...