Mumbai, Feb 25 (PTI) Benchmark equity indices Sensex and Nifty pared early sharp gains to close marginally higher in a volatile session on Wednesday as the US imposing 126 per cent import duties on Indian solar goods dampened investor sentiment and triggered profit-taking.

Retreating around 674 points from the day's high, the 30-share BSE Sensex finally ended 50.15 points or 0.06 per cent higher at 82,276.07. During the day, it jumped 731.99 points or 0.89 per cent to a high of 82,957.91.

The 50-share NSE Nifty went up by 57.85 points or 0.23 per cent to settle at 25,482.50. It hit a high of 25,652.60 during the day, up by around 228 points from the last close.

From the Sensex pack, HCL Tech, Tata Steel, Tata Consultancy Services, InterGlobe Aviation, Sun Pharma, Mahindra & Mahindra, Maruti Suzuki and Tech Mahindra were among the biggest gainers.

TCS rose by 2.14 per cent after the IT services giant asserted that it was "not afraid" of artificial intelligence and is also fine with revenue "cannibalisation" through the deployment of AI tools by its associates.

Reliance Industries, State Bank of India, Adani Ports and Eternal were among the laggards.

In the broader market, solar sector shares tanked more than 14 per cent after the US announced a preliminary countervailing duty of nearly 126 per cent on imports of certain Indian solar goods, alleging that these products are unfairly subsidised by New Delhi.

Waaree Energies tumbled 10.47 per cent, Premier Energies dropped 6.27 per cent, Vikram Solar declined 5.45 per cent and Sterling and Wilson Renewable Energy dipped 1.05 per cent.

“Equities markets advanced on Wednesday, supported by positive global cues, even as risk sentiment remained cautious against the backdrop of trade-related uncertainties. Domestically, sentiment was dampened after the US Commerce Department imposed a preliminary duty of 126 per cent on solar imports from India, citing unfair manufacturing subsidies that enabled exporters to undercut US producers.

"Following the sharp selloff in the previous session, Indian equities closed slightly in the green," Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd, said.

The BSE smallcap select index went up by 0.59 per cent and midcap select index advanced 0.37 per cent.

Among sectoral indices, metal jumped the most by 2.64 per cent, followed by auto (1.82 per cent), BSE Focused IT (1.53 per cent), commodities (1.49 per cent), healthcare (1.35 per cent) and consumer discretionary (0.74 per cent).

Telecommunication,energy, FMCG and realty were the laggards.

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

Markets in Europe were trading in positive territory. The US market ended higher on Tuesday.

"Indian equity markets ended the session on a cautious note after a volatile day of trade. Despite a positive start, benchmark indices gradually pared early gains as profit-booking at higher levels weighed on sentiment.

"The broader undertone remained measured, as investors refrained from aggressive positioning amid the absence of strong domestic triggers and mixed global cues," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.

Foreign Institutional Investors (FIIs) offloaded equities worth Rs 102.53 crore on Tuesday, while Domestic Institutional Investors (DIIs) bought stocks worth Rs 3,161.22 crore, according to exchange data.

"Indian markets opened with a gap-up, driven by upbeat global cues and a rebound in US tech stocks as AI-related uncertainty eased. Additionally, dovish signals from the BoJ supported regional sentiment, keeping Asian markets firm.

"However, the initial strength tapered off as renewed tariff-focused comments from the US President reignited global trade concerns, limiting the day's gains with depreciation in INR," Vinod Nair, Head of Research, Geojit Investments Limited, said.

Brent Crude, the global oil benchmark, dipped 0.14 per cent to USD 70.67 per barrel.

On Tuesday, the Sensex plummeted 1,068.74 points or 1.28 per cent to settle at 82,225.92. The Nifty fell 288.35 points or 1.12 per cent to close at 25,424.65. PTI SUM MR