Mumbai: After an initial sharp setback, stocks recouped their early losses in volatile activity on the Bombay Stock Exchange (BSE) on May 22 on alternate bouts of buying and selling as war fears continued to dominate the market.

The BSE Sensitive Index opened steady at 3,187.54 as against the May 21 close of 3,186.53 and later slipped to a low at 3,144.18. However, fairly good buying at lower levels by institutional investors helped SENSEX recover smartly to 3,175.82 at 10:30 hrs (IST).

Operators were extremely cautious following heightening tension on Indo-Pak borders with reports of Pakistani shelling killing one person in Uri sector of North Kashmir.

Domestic Mutual Funds, however, were believed to have been making purchases whenever shares fell to low levels.

Meanwhile, the NASDAQ Composite Index fell further by 37.41 points on May 21 night.

PTI