The Indian benchmark indices Sensex and Nifty closed lower on Thursday as investors remained cautious ahead of key corporate earnings reports and the Reserve Bank of India's important rate decision on Friday.

Broader markets outperformed the benchmarks, with small-cap shares leading the charge, as the Nifty Smallcap100 index ended higher by 1.85 per cent

After a prolonged absence, foreign institutional investors (FIIs) returned as net buyers on Tuesday, acquiring Indian equities worth Rs 809 crore