Updated from 5:39 p.m. EDT
Investors in India continue to experience extremes in volatility after the Sensitive Index rebounded Tuesday from earlier losses to snap a four-day losing streak. The Sensex mounted a comeback after falling as much as 185 points in the morning to close up almost 200 points.
"To a large extent, negatives factors like inflation and slowdown in corporate growth have been discounted. There are expectations of higher industrial output numbers also. So the combination of these factors proved to be a silver lining," said Hitesh Sheth, head of technical research at Prabhudas Lilladher. The Bombay Stock Exchange's Sensex Index finished higher by 199.43 points, or 1.3%, at 16,123.15.
The buying in the Far East found a home on the American exchanges with some of the largest gains seen in the Indian closed-end management and exchange-traded funds, which had all experienced heavy selling pressure the previous day. Today, the
traded up 9.9% to $24.38;
The India Fund
finished up 16.4% to $46.19; and
Morgan Stanley India Investment Fund
advanced 13.6% to $39.15.
Indian global information technology firm
(WIT - Get Report)
finished 5.8% higher at $10.88. Credit Suisse reinitiated coverage of the stock with a neutral rating. Analyst B Sing said in research note to clients, "the company might face some challenges going forward on account of a weak macro environment. Wipro expects its sequential revenue growth to remain weak over the forthcoming one-to-two quarters. Over the last three weeks, the company has witnessed a rise in the frequency of project cancellations and delays." Wipro also announced plans to add to its staff in China by creating 1,800 new positions in the next three years, according to
said it plans to raise as much as 40 billion rupees ($1 billion) through the issuance of long-term securities in order. The offering will be used to help finance its planned purchase of luxury car brands Jaguar and Land Rover and to build the Nano car, according to
. ADR shares of Tata Motors climbed 4% higher to $16.62.
Some leading Indian ADRs Tuesday were
, trading up 12% to $24.80;
, ripping 12.6% to $105.10; and
Sterlite Industries India
, finishing up 6.6% at $19.72.
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.
Despite the release of troubling inflation data, asian-market value hunters came out of the woodwork Tuesday to bid up shares they deemed oversold. China's consumer price inflation rose in February to an 11-year high at 8.7%, vs. 7.1% for January, according to the Chinese Statistics Bureau.
"There's growing concern that China's inflation is getting out of control," said Li Huiyong, an analyst at Shenyin & Wanguo Securities in Shanghai. The benchmark Shanghai Composite Index advanced 19.5 points, or 0.5%, to 4,165.88, and the Hong Kong's Hang Seng index closed up 290.30 points, or 1.3%, at 22,995.35.
Chinese Internet search company
(BIDU - Get Report)
will launch an instant-messaging service as well as online trading Web sites within the year, according to an interview in the
with Baidu.com president Li Yanhong. Yanhong also said that Baidu is developing a voice search product that will allow Baidu customers to receive search results through calls to the firm's customer service center. ADR shares of Baidu traded up 7.9% to close at $260.39 on the