Benchmark Sensex and Nifty recouped from early losses and settled at fresh record high levels in a volatile trade on Wednesday following buying in bank and select IT shares and gains in European markets.

The 30-share BSE Sensex jumped 408.86 points or 0.55 per cent to settle at a new record high of 74,085.99. During the day, it went up by 474.14 points or 0.64 per cent to hit an all-time high of 74,151.27.

The Nifty climbed 117.75 points or 0.53 per cent to settle at a fresh closing peak of 22,474.05. During the day, it jumped 140.9 points or 0.63 per cent to reach its record high of 22,497.20.

The benchmark indices traded lower in the first half of the session but early gains in European markets helped recoup losses in closed in the green.

Among the Sensex firms, Kotak Mahindra Bank, Axis Bank, Bharti Airtel, Sun Pharma, HCL Technologies, Mahindra & Mahindra, Titan and Tata Consultancy Services were the biggest gainers.

UltraTech Cement, NTPC, Maruti, JSW Steel, Power Grid and Tata Motors were among the laggards.

In Asian markets, Seoul, Tokyo and Shanghai settled lower while Hong Kong ended with gains.

European equity markets were trading in the green. The US markets ended lower on Tuesday.

"Global markets witnessed mixed signals ahead of the US FED chair's testimony to Congress. The domestic market exhibited a smart recovery in the second half, reversing initial losses as buying picked up in large-cap stocks," said Vinod Nair, Head of Research, Geojit Financial Services.

Global oil benchmark Brent crude climbed 0.80 per cent to USD 82.59 a barrel.

Foreign Institutional Investors (FIIs) bought equities worth Rs 574.28 crore on Tuesday, according to exchange data.

Taking a breather after a record-breaking rally, the BSE benchmark declined 195.16 points or 0.26 per cent to settle at 73,677.13 on Tuesday. The Nifty dipped 49.30 points or 0.22 per cent to 22,356.30.

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