This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Friday's Asia Stocks Recap

Indian stocks were hit hard Friday, particularly the banking sector, after Finance Minister Palaniappan Chidambaram encouraged lenders to slash rates for small home loans and cancel $15 billion in loans to farmers.

The wavier of loans to farmers was originally part of Chidambaram's federal budget presented to India's parliament last week. Investor sentiment in the Far East is quickly eroding as market players conclude that the government's fiscal initiatives might slow earnings growth.

"Chidambaram is trying to convince banks to lend at lower rates and boost the economy. This might lead to narrower margins if not accompanied by a fall in deposit costs," said Deven Choksey, chief executive officer of Mumbai-based K.R. Choksey Shares & Securities. The Bombay Stock Exchange's Sensex Index fell 566.56 points, or 3.42%, to 15.975.52.

Indian pharmaceutical company Dr. Reddy's Laboratories (RDY) was hit with a downgrade by Citi Investment Research analyst Prashant Nair. Nair downgraded the stock from buy to hold, citing pricing pressure for Dr. Reddy's German generic business, due to regulation and a change in market dynamics. "Over the next few quarters, we expect the pain in German operations to continue and suppress overall earnings growth," said Nair. ADR shares of Dr. Reddy's fell 0.6% to $14.01.

In the technology sector, Infosys (INFY) also caught an analyst downgrade. Kaufman Brothers cut the stock from buy to hold and cut its price target from $54 to $44, citing poor visibility in the short term for new projects. ADR shares of Inosys fell 3% to $35.91.

According to financialexpress.com, Indian telecommunications provider Tata Communications (TCL) is shopping around the managed service sector looking to make an acquisition.

"We are in discussions with two to three companies at any given time, and some of these talks may materialize, some may not," said Vinod Kumar, president of global data and mobility services at Tata. ADR shares of Tata communications fell 6.3% to $22.12.

Fitch ratings announced Friday they will not be changing their credit rating on Indian bank Icici Bank (IBN) after the firm disclosed mark-to-market losses on their international investment portfolio. Fitch said the market risk on the investments made by Icici Bank has so far increased income volatility without compromising its capital ratios. Rumors had originally suggested that IBN's losses were due to exposure in U.S. subprime loans, but the company denied those rumors earlier in the week. ADR shares of IBN finished down 4.8% at $43.17.

Tata Motors (TTM) chairman Ratan Tata said he would like to take a stake in Italian luxury car brand Ferrari during an interview with Italian magazine L'Espresso, according to Retuers. Ferrari is part of Italian automaker Fiat, which Tata Motors already partners with in India. ADR shares of TTM closed down 4.4% to $16.15.

Leading the decliners among Indian ADRs on Friday were Rediff.com (REDF), losing 7% to $7.28; Satyam Computers (SAY), falling 5.6% to $23.37; and Mahanagar Telephone Nigam (MTE), trading down 5% to $5.36.

Be sure to check out the Far East Portfolio at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs