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Domestic equity benchmark indices settled Wednesday's trade marginally in the red as investors await the US Fed monetary policy review meeting's outcome. With Wednesday's slump, the indices declined in the eight out of the past nine sessions.

Sensex closed at 52,541.39, down 152.18 points or 0.29 per cent, whereas Nifty closed at 15,692.15, down 39.95 points or 0.25 per cent.

According to Vinod Nair, Head of Research at Geojit Financial Services, looming fears of stagflation and volatility ahead of the US Fed's decision forced the market to close flat with a negative bias.

"The equity markets traded nervously ahead of the US Fed meeting outcome. While strength was seen in the morning, selling pressure in the second half dragged the indices lower," said Ajit Mishra, VP - Research at Religare Broking.

Dalal Street seems to be divided over the quantum of rate hike between 50-75 basis points.

"Apart from this, commentary from the US Fed would also be actively tracked by the investors. Meanwhile, participants should remain light and wait for clarity," Mishra said.