The main Democratic Party led by Mr Bersani and its smaller leftist allies were ahead with between 34.5 and 37 per cent, beating the 29 to 31 per cent for a coalition led by the scandal-tainted former prime minister Silvio Berlusconi .

Complicating efforts however were the results in the upper house Senate, showing the centre-Right bloc in the lead with 31.7 per cent, ahead of the centre left on 29 per cent. Mr Grillo's bloc had 25.1 per cent.

The poll showed the centre-left and Mr Berlusconi's alliance neck and neck in the Senate race in the key region of Lombardy, with the centre-left ahead in the regions of Sicily and Campania and Mr Berlusconi's bloc well ahead in Veneto.

A projection by the SkyTG24 news channel had previously said the left would manage to win a majority in both chambers of parliament, following fears that it would fail to snag a majority in the upper house Senate.

The newcomer Five Star Movement led by former-comedian-turned-activist Beppe Grillo, who has channelled growing disenchantment with traditional politicians and rising social discontent, was given around 20 per cent in the exit polls.

Polls closed at 3pm (2pm GMT) today, ending two days of voting in an election being closely watched by Italy's eurozone partners as well as international investors trying to decide if they consider the third-largest economy in the Eurozone a good bet.

European shares lost their earlier gains on Monday after a projection by Italian TV showed the centre-right party, led by former leader Mr Berlusconi, leading in elections for the Senate vote.

The pan-European FTSEurofirst 300 index, which had been up by around 0.5 percent before the RAI TV projection was published, trimmed those gains to leave the index up by 0.1 percent at 1,166.34 points by 1533 GMT.

Italy's benchmark FTSE MIB equity index also pared its earlier gains after RAI published its projection on how the Senate votes were proceeding.

"The market didn't want Berlusconi back in the driving seat and the polls are showing the centre-right is coming out a loser. It will be Bersani who decides whether he needs (centrist Prime Minister Mario) Monti or not," said a fund manager at a large Milan investment house.

A lacklustre turnout however reflected widespread frustration among voters fed up with austerity cuts and a grinding recession.

In the first day of voting on Sunday, turnout was 55 per cent - seven percentage points lower than at the same time in the last elections in 2008.

Outgoing prime minister Mario Monti was slated for fourth place according to the exit polls, with only around 10 percent of the vote.