The broader NSE Nifty was down 0.23 per cent at 10,170.22, while the benchmark BSE Sensex was 0.22 per cent lower at 32,981.10.
"The markets will react to the Fed hike news, but investors are jittery ahead of the exit polls from Gujarat elections," said Siddhartha Khemka, head of research (retail) at Motilal Oswal Securities.
"With the latest macro-economic data and ahead of the election results, shares will remain volatile."
Retail inflation in November breached the Reserve Bank medium-term target of 4 per cent, which could put pressure on it to raise policy rates in 2018, while the country's annual industrial output grew a lower-than-expected 2.2 percent in October.
The Fed raised interest rates for a third time this year on Wednesday, but left its rate outlook unchanged.
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