Updated from 5:08 p.m. EDT
Stocks in India followed global market trends Thursday, with the Sensitive Index plunging 770.63 points, or 4.8%, to 15,357.35. Heavy selling pressure hit the Indian markets for the entire trading session as investors fear the global credit crisis was worsened by the U.S. Federal Reserve's decision to pump $200 billion into the system.
J.P. Morgan also contributed to the battered investor sentiment, cutting the growth outlook for India to 7% for the current fiscal year from 7.5%.
"The market's appetite for absorbing bad news is very limited. There is more bad news flowing in from global markets than from the domestic environment," said Sanjay Sinha, chief investment officer at SBI Funds Management in Mumbai.Indian banking giant Icici Bank (IBN) received some good news Thursday, after Moody's Investor Service said it would not be changing its rating the bank. Moody's said it sees no impact from Icici's mark-to-market writedown of its credit derivates and fixed-income investment portfolios. ADR shares of Icici Bank fell 1.8% to $42.24. Indian technology ADRs were one of the few bright spots for the region, with Satyam Computer (SAY) trading up 3.9% to $22.41; Rediff.com (REDF), rising 3.4% to $7.25; and Sify Technologies (SIFY) finishing up 0.7% to $4.20. Indian auto maker Tata Motors (TTM) is looking for engine price guarantees from Ford Motor (F) if the proposed purchase of luxury car brands Jaguar and Land Rover gets completed, according to The Detroit News. ADR shares of Tata Motors fell 1.3% to $15.78. 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.