Indian benchmark indices closed flat on Tuesday, with blue-chip IT stocks gaining, while market participants exercised caution ahead of key inflation data from India and the United States due later in the week.

The benchmark S&P BSE Sensex declined 1.59 points to settle at 81,510.05, while the broader Nifty 50 index closed at 24,610.05, lower by 8.95 points or 0.04%.

The heavyweight IT index rose the most by 0.8%, making up for losses from the more domestically focussed smallcaps and midcaps stocks.

IT majors Infosys and LTIMindtree gained over 2% each after HSBC upgraded the two firms and named them its top picks in the sector.

Among individual stocks, online food delivery platform Swiggy ended 1.1% higher after global brokerage firm CLSA initiated coverage on the stock with "outperform", forecasting a 32% upside in the next 12 months.

The U.S. inflation data, due on Wednesday, will likely shape the U.S. Federal Reserve's interest rate trajectory, impacting foreign inflows into emerging markets such as India.

Meanwhile, India's CPI data, due on Thursday, is expected to have eased in November.

Expert View
Markets remained range-bound for another session, closing nearly unchanged as the recent rebound paused, said Ajit Mishra – SVP, Research at Religare Broking, commenting on the day’s action, adding that “after a flat opening, the Nifty index drifted lower during the first half of the session, but a swift recovery in select heavyweights erased the losses, ultimately closing at 24,610.05.”

“Despite the consolidation, the continued buoyancy in midcap and smallcap stocks is encouraging. Additionally, rotational participation across most sectors is sustaining the positive sentiment during this phase. Traders should maintain a stock-specific approach, focusing on long positions unless Nifty decisively breaks below the 24,300 level,” Mishra added.

Global markets
Among global equities, MSCI's world share index was down 0.15% on Tuesday, with Europe's broad Stoxx 600 index off 0.3%, taking cues from tech-led declines on Wall Street rather than building on stimulus-fueled gains in China.

State media outlet Xinhua reported on Monday that top Communist Party officials had shifted the monetary policy stance from "prudent" to "moderately loose" ahead of the target-setting Central Economic Work conference this week, mirroring their response in previous crises.

Chinese bluechips stocks rose 0.7% on Tuesday. The stocks in Japan and Korea were also higher, the latter up 2.4% helped by authorities' vowing measures to stabilise markets in a bid to calm investors spooked by political turmoil.