Mumbai, Dec 11 (IANS): Indian stock indices bounced back into the green as election trends on Tuesday noon showed the Bharatiya Janata Party (BJP) took a narrow lead in the Madhya Pradesh Assembly elections after trailing to the Congress earlier.

The S&P BSE Sensex, which had fallen over 500 points during the morning session, traded at 34,988.62 points around noon, higher by 28.29 points or 0.08 per cent from the previous close.

The Nifty50 on the National Stock Exchange traded at 10,503.30 points, higher by 14.85 points or 0.14 per cent from the previous close.

According to analysts, market indices pared losses due to short covering and buying at lower levels.

"Markets would swing till around noon based on leads positions in Madhya Pradesh as the other four states are showing clear winners," HDFC Securities' Retail Research Head Deepak Jasani told IANS.

On the currency front, the Indian rupee weakened to 72 against the US dollar from its previous close of 71.34.

"Election results are not going the BJP way. But the rupee has recovered from the opening losses as central bank intervention may be occurring," said Anindya Banerjee, Deputy Vice President for Currency and Interest Rates with Kotak Securities.

"We could see more volatility and USDINR can trade within a wide range of 71.70 and 72.50 on spot."