Mumbai, Dec. 9 -- The domestic equity indices traded with modest cuts in the early afternoon trade as investors stayed on edge ahead of the Federal Reserve's rate decision and lingering uncertainty over a U.S. trade agreement. The Nifty traded below the 25,900 level. Financial services share extended losses for the second consecutive trading session.

At 12:30 ST, the barometer index, the S&P BSE Sensex dropped 213.65 points or 0.25% to 84,889.04. The Nifty 50 index lost 61.50 points or 0.24% to 25,897.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.51% and the S&P BSE Small-Cap index jumped 0.88%.

The market breadth was strong. On the BSE, 2,385 shares rose and 1,557 shares fell. A total of 2...