FTSE recovers in late trading

The FTSE 100 Index saw a nervous start to the week today as worries over Greece's ability to repay its debts ensured a jittery session.

Anxiety over India's surprise move to raise interest rates also fuelled concerns over sinking growth once governments start winding down stimulus measures.

The Footsie was down more than 60 points at one stage although it later clawed back most of the losses to finish just 5.6 points down at 5644.5 as US stocks gave a late-session lift to the top flight.

The Dow Jones Industrial Average added 0.4% after a flat start, led higher by healthcare firms after the House of Representatives passed a controversial health reform bill.

The pound see-sawed for much of the day against the dollar but eventually edged towards 1.51 as investors moved out of the safe-haven currency into other assets.

Sterling moved up to 1.11 against the euro as markets await the outcome of an European summit on Thursday which will hopefully put an end to the Greek debt crisis.

Defensive stocks were in vogue for investors in a choppy session with drugs giants GlaxoSmithKline and AstraZeneca up 7.5p to 1294p and 28p to 2970p respectively. Tobacco companies also made gains, led by Imperial Tobacco with a 19p increase to 2050p.

Investment bank Investec enjoyed a healthy debut in the top flight - adding 13p to 552p - but plumbing and heating giant Wolseley saw poorer fortunes.

The firm was one of the market's biggest fallers as it revealed that interim trading profits slumped 34%. The firm lost 2%, or 34p to 1586p.

It also unveiled the results of a group-wide review that will see 19 businesses sold if their performance is not improved - including its UK Build Center builders' merchant chain.

Icap was another to report back after a strategy review. The group - down 10.1p at 381.4p - said it would drop its struggling full-service agency cash-equities business in Europe and Asia after poor performance. The move will impact 114 jobs.

In other corporate news, Irn-Bru maker AG Barr was a strong FTSE 250 riser after it said annual profits were up 20.8% to £27.9m (€31.1m). Barr rose 1% or 9.5p to 910p.

Office space firm Regus was the biggest second tier riser after it raised its dividend and said it would step up expansion plans despite a 42% fall in pre-tax profits. Shares jumped 15%, or 13.3p to 100.5p.

The biggest Footsie risers were Smiths Group ahead 27p at 1127p, Investec up 13p at 522p, Rio Tinto up 60p at 3730p and Lloyds Banking Group up 1p at 61.1p.

The biggest Footsie fallers were Icap down 10.1p at 381.4p, British Land off 10.7p at 463.1p, Wolseley down 34p at 1586p and Tullow Oil down 25p at 1239p.