FIIs net bought Indian equities worth Rs 785 crore, DIIs net buy Rs 3912 crore

Indian equities witnessed a volatile session on Tuesday, with the Nifty closing at 25,884 (-0.3%) - recording losses from last three sessions and trading with a subdued tone ahead of the monthly derivatives expiry. Broader market indices, however, saw some buying interest, with the Midcap and Small-cap indices managing to close with marginal gains of 0.3% and 0.2%, respectively.

Reflecting on market performance today, Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial services, said, "Sectoral performance was mixed, with Nifty IT index declining around 0.6%, , while Realty was up 1.6%, emerging as the day’s outperformers, due to improving demand dynamics in residential and commercial real estate and easing input costs.

He adds that global sentiment offered limited support, despite U.S. equities extending gains overnight on the back increasing odds of December US Fed rate cut to 81% from below 33% last week. Further tempering sentiments, investors remained focused on the upcoming U.S. inflation print and its implications for the Federal Reserve’s policy trajectory.

Persistent FII outflows, caution ahead of US Fed meeting next month and uncertainty around progress on a potential U.S.–India trade deal is likely to keep traders guarded.