The wider Nifty50 of the National Stock Exchange (NSE) fell by 6.40 points or 0.06 per cent to close at 10,141.15 points.
The Fed is due to announce its decision at 1800 GMT on Wednesday and is widely expected to keep rates unchanged after a two-day meeting but could begin paring its bond holdings, with reductions likely to start in coming months.
The gauge had gained 610.64 points in the previous seven straight sessions. FII's passive trading approach with capital inflow limited to primary market and debt also might have weighed down the momentum.More news: Hurricane Maria makes landfall on Puerto Rico as a Category 4 storm
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Market heavyweight Reliance Industries was in a sweet spot as the scrip hit a record high of Rs 872.10 (intra-day) before closing 0.85 per cent higher at Rs 847.10 after the IUC cut is seen as benefiting the company's telecom unit, Reliance Jio. Shares of Bharti Airtel Ltd, Idea Cellular Ltd and Reliance Communications Ltd slumped 6.2%, 7.4% and 4.2%, respectively, while those of Reliance Industries Ltd hit a record high at Rs872.10 (up 3.8%) intraday on Wednesday.
Shares of Bharat Petroleum (down 2.19 per cent), Bharti Airtel (down 2.01 per cent), Tata Motors (down 1.64 per cent), Coal India Ltd (down 1.49 per cent), Hero MotoCorp (down 1.37 per cent), Cipla (down 1.34 per cent), Sun Pharma (down 1.32 per cent), Tata Motors (down 1.22 per cent), Hind. Tata Motors fell 1.98 per cent to Rs 415.50. Even domestic institutional investors (DIIs) offloaded shares worth a net Rs 77.68 crore yesterday, as per provisional data. IT stocks too were trading in the red as the Nifty IT index was down 0.40 per cent in morning trade.