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.