Disclosed herein is an improved fluidized catalytic cracking process for converting normally liquid hydrocarbon feedstock with simultaneous reduction of sulfur content in the liquid products obtained therefrom which comprises carrying out the cracking process in the presence of carbon monoxide gas as a reducing agent. The process optionally includes a step of premixing the hydrocarbon feedstock with carbon monoxide gas causing major sulfur reduction before effecting the cracking. The premixing is done in a specified nozzle assembly linked to the FCC unit.