Equity benchmark indices fell in early trade on Thursday in line with weak trends in global markets amid lack of any breakthrough in the US debt ceiling talks.

However, later both indices Sensex and Nifty turned volatile and were oscillating between highs and lows.

The 30-share BSE Sensex fell 75.1 points to 61,698.68 in early trade after beginning the day on a weak note. The NSE Nifty dipped 31.05 points to 18,254.35 in initial trade.

But later, the Sensex quoted 25.46 points lower at 61,748.32 and the Nifty traded with a decline of 16.25 points to 18,270.05.

From the Sensex pack,Tata Motors, State Bank of India, Mahindra & Mahindra, HCL Technologies, Wipro, IndusInd Bank, HDFC, Infosys, Tata Steel, Axis Bank, Tata Consultancy Services and Reliance Industries were the major laggards.

ITC, Nestle, Kotak Mahindra Bank, Bharti Airtel, Power Grid and Larsen & Toubro were among the gainers.

In Asian markets, Seoul, Shanghai and Hong Kong quoted lower, while Tokyo traded in the green.

The US market ended lower on Wednesday.

"The uncertain stance of the Fed and ongoing talks about the US debt ceiling are casting a shadow of volatility in the markets," said Prashanth Tapse - Research Analyst, Senior VP (Research), Mehta Equities Ltd.

The Sensex fell 208.01 points or 0.34 per cent to settle at 61,773.78 on Wednesday. The Nifty declined 62.60 points or 0.34 per cent to end at 18,285.40.

"The important factor weighing down the markets in the near-term is the lack of breakthrough in the US debt ceiling impasse," said V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

Meanwhile, global oil benchmark Brent crude dipped 0.05 per cent to USD 78.32 a barrel.

Foreign Institutional Investors (FIIs) were net buyers on Wednesday as they bought equities worth Rs 1,185.84 crore, according to exchange data.

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