Mumbai, Dec. 10 -- The domestic equity indices traded with minor cuts in the early afternoon trade. Investors are closely watching the Federal Reserve's commentary on growth and inflation to gauge the trajectory of interest rates. Markets broadly anticipate a 25-basis-point rate cut from the Fed today, keeping traders on alert.

The Nifty traded below the 25,850 mark. PSU Bank shares declined after advancing in the past trading session.

At 12:30 ST, the barometer index, the S&P BSE Sensex, lost 88.53 points or 0.10% to 84,577.75. The Nifty 50 index lost 32.80 points or 0.13% to 25,806.85.

In the broader market, the S&P BSE Mid-Cap index shed 0.38% and the S&P BSE Small-Cap index added 0.04%.

The market breadth was negative. On the BSE,...