Volatility continued as key benchmark indices once again trimmed losses after hitting fresh intraday lows in mid-morning trade. The barometer index, BSE Sensex, was down 36.97 points or 0.22%, up about 20 points from the day's low and off about 65 points from the day's high. Weakness in Asian shares weighed on sentiment. Asian shares fell, with Italy due to auction more debt later in the day, Spain under the threat of more downgrades, and weekend elections in Greece looming closer.

The market moved alternately between positive and negative terrain near the flat line in early trade. A bout of volatility was witnessed as key benchmark indices trimmed losses after hitting fresh intraday lows in morning trade. Volatility continued as the market once again trimmed losses after hitting fresh intraday low in mid-morning trade.

The S&P CNX Nifty was down 15.55 points or 0.38% to 5,105.90. The index hit a low of 5,099.70 and a high of 5,126.85 in intraday trade.

The market breadth, indicating the overall health of the market, turned negative from positive. On BSE, 1,031 shares fell and 984 shares rose. A total of 129 shares were unchanged.

Most Asian shares staged a retreat on Thursday, with Italy due to auction more debt later in the day, Spain under the threat of more downgrades, and weekend elections in Greece looming closer. Key benchmark indices in China, Hong Kong, Japan, Taiwan, Singapore and Indonesia fell by between 0.06% to 0.77%. South Korea's Kospi rose 0.02%.