Mumbai, Jan. 5 -- The key equity benchmarks continued to trade with small cuts in early-afternoon trade as investors balanced encouraging corporate updates against heightened geopolitical risks. Initial optimism driven by improving quarterly earnings was capped by caution over the potential fallout from reported U.S. military action in Venezuela. The Nifty traded below the 26,300 level. IT and oil & gas shares declined, while realty, consumer durables and media shares advanced.

At 1:30 ST, the barometer index, the S&P BSE Sensex declined 133.13 points or 0.16% to 85,628.88. The Nifty 50 index dropped 42.60 points or 0.16% to 26,286.05.

The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.11% and the S&...