Benchmark indices Sensex and Nifty closed lower in a volatile trade on Wednesday as investors remained cautious amid conflicting geopolitical signals from the West Asia and fresh foreign fund outflows.

The 30-share BSE Sensex declined 141.90 points, or 0.19 per cent, to settle at 75,867.80, with 20 of its constituents ending higher and 10 with losses. During the day, it hit a high of 76,224.68 and a low of 75,748.21, gyrating 476.47 points.

The 50-share NSE Nifty skidded 6.55 points, or 0.03 per cent, to end at 23,907.15.

Among 30 Sensex firms, HDFC Bank, Infosys, ITC, Hindustan Unilever, Reliance Industries and ICICI Bank were the major laggards.

Power Grid, Eternal, NTPC and Tata Steel were the major gainers.

Brent crude, the global oil benchmark, dropped 3.24 per cent to USD 96.35 per barrel.

"Indian equity markets ended largely subdued as investors adopted a wait-and-watch approach amid conflicting geopolitical signals from the Middle East.

"While indications of continued diplomatic engagement between the US and Iran helped stabilise sentiment and limit aggressive selling pressure, the absence of any concrete breakthrough kept risk appetite restrained," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

In Asian markets, South Korea's benchmark Kospi and Japan's Nikkei 225 index ended higher, while Shanghai's SSE Composite index and Hong Kong's Hang Seng index settled lower.

Markets in Europe were trading in positive territory. US markets mostly ended higher on Tuesday.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 2,407.87 crore on Tuesday, according to exchange data.

On Tuesday, the Sensex declined 479.26 points, or 0.63 per cent, to settle at 76,009.70. The Nifty dropped 118 points, or 0.49 per cent, to end at 23,913.70.