The stock market has plunged, but not to the extent that investors were expecting.
Bajaj Financial Holdings Ltd.
reported a loss for the second quarter, but the company, which is part of the Taj Group, said the losses were mainly due to the decline in oil prices.
Investors were looking for a quick recovery after the U.S. Federal Reserve lifted interest rates on Friday, which are seen as easing concerns about the economy.
However, the market rallied quickly and was up 5.8% for the day, and was down 4.2% in early trading on Friday.BJH Financial Inc., which is owned by the Taj group, reported a profit of $2.5 billion.
Its shares rose 2.8%.
Investors are also concerned about the impact of a U.N. Security Council resolution on oil prices, which the Organization of the Petroleum Exporting Countries voted unanimously on Thursday to impose sanctions on the oil sector.
That could affect the value of the companies that own and operate the oil rigs in the Gulf of Mexico.
The U.K. energy firm Shell is planning to spend up to $1 billion to upgrade its oil rigs that have been in the U.
“Oil prices have fallen to below $30 a barrel.
It is a good time to buy BP Plc’s (BP) shares.
The share market is not very volatile and the oil rig is a high-quality asset,” said Daniel Noll, chief investment officer at investment firm Oppenheimer & Blohm & ; Poppen.
Oil prices are also expected to fall further as the global economy continues to struggle.
Oil futures fell as low as $29.10 a barrel, below the lows of $26.94 and $26, a level not seen since June 2011.