Indian equity markets experienced volatility, closing mostly flat on Tuesday, with the Sensex and Nifty hovering near previous levels. Persistent foreign institutional investor (FII) outflows and year-end caution subdued sentiment, though selective buying in auto, metal, and PSU bank stocks provided some support. Broader market indices underperformed, and trading activity remained muted ahead of the Q3 earnings season and year-end holidays. Global markets showed mixed signals, with US indices declining and Asian markets trading lower.