Stocks in India put in a strong showing Friday, bouncing of a six-month low established in the previous trading session. The Bombay Stock Exchange Sensitive Index roared higher by 403.17 points, or 2.6%, to 15,760.52.
Value investors helped lead the rally in the Far East as market players continue to pick through the rubble to find high-quality stocks on sale. India's benchmark index has plunged more than 20% since January.
"Today's rise was more of a technical bounceback. Markets are still nervous and the outlook remains more negative than positive," said Nipun Mehta, chief executive at Unitis Tower Wealth Advisors.
The bounce overseas did little to help Indian ADRs on the U.S. stock exchanges. Indian closed-end management funds and exchange-traded funds fell across the board with
The India Fund
dropping 4.9% to $43.72;
Morgan Stanley India Investment Fund
losing 3.7% to $37.26; and
falling 2.9% to $22.27.
is looking to open up a vehicle assembly plant in South Africa, according to
. Tata plans to invest $100 million into the project and looks to have it up and running by 2010. ADR shares of Tata Motors fell 2.2% to $15.43.
One of the few Indian ADRs to advance was information technology firm
Patni Computer Systems
. ADR shares of Patni traded higher by almost 3% to close at $10.69.
Leading the trend lower among the Indian ADRs were
Mahanagar Telephone Nigam
, trading off 7% to $4.81;
, falling 5% to $22.88; and
, finishing down 4.5% to $40.34.
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.
Asian markets finished the week on a sour note Friday as investors continued to sell equities in the face of inflation and economic growth concerns. China's Shanghai Composite Index lost 8.58 points, or 0.2%, to 3,962.67, and Hong Kong's Hang Seng Index plunged 64.53 points, or 0.3%, to 22.237.11.
"It seems that the market isn't likely to make a comeback until the government raises the interest rate," said Wu Kan, at Dazhong Insurance Co. in Shanghai.
Chinese telecommunications company
Hutchison Telecommunications International
received an upgrade from Goldman Sachs from neutral to buy and price target increase from $25 to $26. Goldman also added Hutchison to its "Conviction List." ADR shares of Hutchison finished up 4% at $21.36.
Hedge fund manager Kenneth Griffin, who runs
Citadel Investment Group
, issued a 13G filing that disclosed a 5.4% stake in Chinese alternative energy company
. ADR shares of Trina Solar closed 3.4% lower at $30.68.
The Chinese oil and gas sector was hit hard Friday after a number of analysts issued some cautios comments on
. Lehman Brothers analyst Cheng Khoo said, "PetroChina's earnings are likely to disappoint the market because we think consensus estimates are too optimistic." BNP Paribas analyst Bradley Way said, "$100 oil meant a net loss for PetroChina because refining losses would exceed the gains from exploration and production."