Stock market news: Benchmark indices witnessed a decline on Wednesday, with top private lender HDFC Bank and consumer stocks leading the downturn, as investors brace for the release of the highly anticipated US inflation data.

The benchmark NSE Nifty 50 slid by 0.08 per cent to 22,200.55 points, while the S&P BSE Sensex settled 0.16 per cent lower at 72,987.03.

Seven out of thirteen major sectors registered losses, with financial services experiencing a 0.32 per cent drop, ending a three-session winning streak.

HDFC Bank, the heavyweight in the Nifty 50 index, saw a decline of 1.54 per cent during the trading session.

G Chokkalingam, managing director of research at Equinomics Research said, "Sustained FPI (foreign portfolio investors) selling is creating nervousness in the markets and large-caps, financials like HDFC Bank, which have high FPI ownership, could remain subdued ahead of elections."

Foreign portfolio investors have sold Indian shares worth Rs 25,280 crore in just 10 sessions in May, marking the highest since January.

Domestic equities experienced increased volatility, hovering around 19-month high levels recorded on Monday.

State-run banks, however, saw an uptick of 1.42 per cent, marking their best session in over two weeks. This was led by a 5.02 per cent surge in Canara Bank after its inclusion in a key MSCI index.

IT stocks, which derive a significant portion of their revenue from the United States, remained subdued ahead of the US consumer inflation data release.

Analysts suggest that if the US inflation data exceeds expectations, it could lead to a delay in US rate cuts, triggering further foreign outflows.

Consumer stocks experienced a decline of 0.91 per cent, with Colgate-Palmolive India witnessing a drop of 5.23 per cent, despite reporting a rise in quarterly profit.

ICICI Securities remarked, "While Colgate's profit beat estimates, on a low base, the results are still underwhelming," adding that market share losses in the naturals segment pose a key risk for the company.

In contrast, small- and mid-cap stocks, which are more domestically-focused, outperformed the benchmarks, gaining 0.58 per cent and 0.96 per cent, respectively.

(With Reuters inputs.)