Jan 29 (Reuters) - India's benchmark indexes are on track for a cautious start on Wednesday, as investors remained wary ahead of the U.S. Federal Reserve's rate decision, expected later in the day, and the union budget this weekend.

The GIFT Nifty futures GIFc1 were trading at 23,021.5, as of 8:04 a.m. IST, indicating that the blue-chip NSE Nifty 50 .NSEI will open near Tuesday's close of 22,957.25.

Both Nifty 50 and BSE Sensex .BSESN climbed 0.6% and 0.7%, respectively, on Tuesday, supported by financial stocks following the central bank's liquidity boost. However, they remain about 12% below their record high levels.

"What we witnessed on Tuesday is a marginal relief rally, helped by banks, but the overall core trend remains downside for the market," said Satish Chandra Aluri of Lemonn Markets Desk.

The Nifty and Sensex are on course for their worst monthly losing streak in 23 years, pressured by lacklustre earnings, foreign outflows and economic uncertainty.

There is caution among investors as we approach the Fed decision and the union budget, two analysts said.

The Fed is likely to hold the lending rate steady at its policy meeting, which concludes later in the day.

The U.S. central bank's comments on the future rate trajectory, following U.S. President Donald Trump's call for lower interest rates, will be crucial for global markets as they impact foreign flows.

U.S. Treasury drifted higher overnight, while the dollar strengthened. A rebound in technology stocks powered Wall Street equities higher, following a steep decline on Monday sparked by a low-cost Chinese artificial intelligence model.

Tech stocks led the rebound in Asian markets on Wednesday. MKTS/GLOB

India's union budget, due on Feb. 1, could be crucial for near-term market trajectory, multiple brokerages said, as they anticipate measures to arrest the slowdown in the economy and consumption, while sticking to fiscal prudence.

STOCKS TO WATCH

** Automaker Bajaj Auto BAJA.NS and TVS Motor TVSM.NS miss Q3 profit view on domestic sales slowdown

** Toothpaste maker Colgate-Palmolive India's December-quarter profit misses analysts' estimate on moderating demand

** Non-bank lender Mahindra & Mahindra Finance MMFS.NS posts rise in December-quarter profit

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sherry Jacob-Phillips)

((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))