The Indian stock markets opened flat on Wednesday as investors adopted a cautious stance ahead of the U.S. Federal Reserve's highly anticipated decision on interest rates.

The Federal Open Market Committee (FOMC) is expected to announce its decision on the benchmark interest rates after Indian market hours later today. Global markets are also bracing for the outcome, with investors treading carefully as speculation on a potential rate cut builds.

At the opening bell, the Nifty 50 was largely unchanged, trading at 25,402.40 points, down by 16.15 points or 0.06%. The BSE Sensex also shed 43 points, or 0.07%, to settle at 83,030.33.

In early trade, Hero MotoCorp Limited continued its bullish run, rallying 3.25% to ₹5,967, followed by Bajaj Auto, which gained 2.02%, and Bharti Airtel, which rose by 1.68%. On the losing side, Tata Motors extended its downward trend, dropping by 1.36%, while Eicher Motors and Tata Steel each shed around 1%.

In broader Asia, markets were trading in the green, with Japan's Nikkei rebounding as the Yen weakened against the U.S. Dollar. The Nikkei gained 82.06 points, or 0.23%, to reach 36,285.28 points.

Meanwhile, Hong Kong's Hang Seng Index rallied by 237.90 points, or 1.37%, to 17,660.02, and South Korea's KOSPI Composite remained flat at 2,575.41 points.

On the other side of the globe, U.S. stocks closed mostly unchanged on Tuesday after giving up earlier gains that had briefly propelled the S&P 500 and Dow Jones Industrial Average to record highs.

The Dow Jones Industrial Average fell by 15.90 points, or 0.04%, to close at 41,606.18, while the S&P 500 edged up by 1.49 points, or 0.03%, to 5,634.58. The Nasdaq Composite gained 35.93 points, or 0.20%, to finish at 17,628.06.

All eyes are now on the Federal Reserve's rate decision, with investors and policymakers eagerly awaiting a possible cut. Market expectations suggest a likely reduction in interest rates, but the magnitude remains uncertain.

The Fed is expected to finalize its decision later tonight (IST), with Fed Chair Jerome Powell scheduled to address the media around 11:30 PM (IST). If announced, this would mark the U.S. central bank's first rate cut in over four years.

According to CME's FedWatch Tool, there is currently a 65% probability of a 50-basis-point cut, up from 35% just a week ago.