The BSE Sensex is down 0.14 percent and the 50-share NSE Nifty is down 0.07 percent.
Some doubts creeping in about whether the RBI will indeed cut the repo rate by 25 bps as widely expected after a central bank report on Tuesday noted sustained fiscal consolidation was needed to create room for monetary easing.
State Bank of India falls 0.2 percent, while HDFC Bank Ltd is down 0.9 percent.
Among other rate-sensitive stocks, Tata Motors Ltd falls 1.2 percent, while real estate developer DLF Ltd is down 1.1 percent.
However, Axis Bank Ltd gains 3.2 percent as dealers cite good demand for its share sale of up to $1 billion.