The Indian stock market's benchmark indices, BSE Sensex and Nifty 50, opened flat and traded lower during early hours on Tuesday, reflecting cautious investor sentiment ahead of the crucial U.S. Federal Reserve policy meeting.

As of 10:20 AM, the 50-share Nifty was marginally down by 13.15 points or 0.05%, trading at 25,370.05. Meanwhile, the 30-share Sensex traded flat at 82,940.69 after hitting an intraday low of 82,878.20 shortly after the opening bell.

The FMCG sector saw buying interest, with Britannia leading the gains, up 1.58%. HUL (Hindustan Unilever) and Tata Consumer Products followed closely, each trading around 1% higher. On the other hand, Tata Motors dropped over 2% after 1.9 crore shares were traded in a large block deal. Tech shares also faced selling pressure, with TCS and Wipro declining by 0.70%.

Market breadth was slightly positive on the NSE, with 1,137 shares advancing out of 2,286 traded, while 1,063 stocks declined. Despite this, most sectoral indices were in the red.

In Asia, market performance was mixed. Japan's Nikkei 225 slipped by 611 points, or 1.66%, to 35,969.80, weighed down by a stronger yen. Meanwhile, Hong Kong's Hang Seng Index surged by 1.44%, or 250.79 points, to 17,672.91, buoyed by speculation of fiscal stimulus from the Chinese government, which boosted Hong Kong-listed Chinese stocks.

Earlier in the week, U.S. equity markets had a mixed session. The Dow and S&P 500 gained 0.55% and 0.13%, respectively, while the Nasdaq Composite dipped 0.52%, reflecting investor nervousness over the tech sector ahead of the Fed's interest rate decision.

Global markets, including India's, are keenly watching the outcome of the U.S. Federal Open Market Committee (FOMC) meeting, which begins today. Investors are expecting a significant interest rate cut from the U.S. Federal Reserve, with a 50-basis-point reduction increasingly likely, compared to earlier predictions of a 25-basis-point cut. According to the CME FedWatch Tool, the probability of a 50-basis-point cut jumped from 30% on September 6 to 62% as of Monday, September 16.