Market benchmarks closed in the red after a highly volatile session on Wednesday despite a positive trend in global equities amid signs of cooling of Russia-Ukraine tensions.

The 30-share BSE Sensex swung nearly 800 points during the session before closing at 57,996.68 -- marking a loss of 145.37 points or 0.25 per cent.

Likewise, the NSE Nifty see-sawed between gains and losses before settling 30.25 points or 0.17 per cent lower at 17,322.20.

On the Sensex chart, NTPC, SBI, UltraTech Cement, ICICI Bank, Tata Steel, Bajaj Finserv and Bjaja Finance were among the major laggards, shedding as much as 1.63 per cent.

In contrast, Bharti Airtel was the top performer, spurting 1.41 per cent, followed by HDFC, M&M, Dr Reddy's, Kotak Bank and Nestle India.

Of the index constituents, 22 shares closed with losses.

"Indian equities staged a rebound to recoup most of its losses in the mid-noon session on the back of de-escalating tensions along the Russia-Ukraine border. However, falling western markets prompted a quick sell-off during closing hours.

"In yet another blow to global inflationary pressure, UK's inflation jumped to 5.5 per cent in January recording a 30 year high, putting pressure on the Bank of England for a further rate hike sooner than earlier anticipated," said Vinod Nair, Head of Research at Geojit Financial Services.

Ajit Mishra, VP - Research, Religare Broking Ltd, said markets are currently dancing to the global tunes and the trend is likely to continue.

"The US Fed meeting minutes and lingering tension over the Russia-Ukraine crisis will remain on the radar. Besides, the scheduled weekly expiry would further add to the choppiness. We reiterate our cautious stance and suggest waiting for further clarity," he noted.

Sectorally, metal, banking and basic materials indices fell the most -- dropping up to 0.66 per cent. Of the 19 indices, 11 indices closed in the red.

Broader BSE midcap and largecap gauges followed the benchmark to end lower, while the smallcap index logged gains.

World stocks edged higher after Russia said it was pulling back some troops from the Ukraine border, even as the US administration reiterated its commitment to respond "decisively" in case of a Russian attack.

Elsewhere in Asia, bourses in Tokyo, Shanghai, Hong Kong and Seoul closed with significant gain.

Markets in Europe too were largely trading higher in the afternoon session.

Global crude oil benchmark Brent Futures slipped 0.19 per cent to USD 93.06 per barrel.

The rupee appreciated by 23 paise to close at 75.09 against the US dollar.

Foreign institutional investors (FIIs) were net sellers in the capital market on Tuesday, as they offloaded shares worth Rs 2,298.76 crore, according to stock exchange data.