Sensex Recovers Even As Global Worries Persist

07/01/2015 1:29 PM IST | Updated 15/07/2016 8:24 AM IST
Hindustan Times via Getty Images
MUMBAI, INDIA - MAY 13: Bombay stock exchange on May 13, 2014 in Mumbai, India. The Sensex hit a record high of 24,068.94, surpassing the psychologically important 24,000 mark for the first time in its history surging after exit polls showed the Bharatiya Janata Party and its allies winning a majority in the elections. (Photo by Anshuman Poyrekar/Hindustan Times via Getty Images)

India's benchmark stock exchange recovered from the hammering yesterday even as investors continued to flee to safer shores.

The S&P BSE Sensex fell 0.2 percent to 26,931.67 in noon trading in Mumbai. It had tumbled to its lowest level in sixteen months yesterday, as investors got spooked by lower oil prices that indicates the world economy is slowing, and worries about Greece's future in Europe.

Falling oil prices is good news for India, which imports 80 percent of its energy, but those gains might be overwhelmed by lower exports if major European economies slow down.

Investors have tried to deal with the uncertainty by moving to safer havens, such as sovereign debt. That pushed yields of 10-year U.S. Treasury notes to below 2 percent yesterday.

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