Updated from 5:08 p.m. EDT
Indian stocks cooled off Wednesday after Goldman Sachs issued some cautious notes on banks in the region. Profiting-taking also hit the Far East as investors looked to lock in gains following a large one-day point gain Tuesday.
"The Sensex Index is likely to move in a narrow range and digest gains after the strong rise in the past four days," said Deven Choksey, chief executive officer at K R Choksey Shares & Securities. The Bombay Stock Exchange Sensitive Index lost 130.66 points, or 0.8%, to 16,086.83.
The long-awaited sale of Ford Motor's (F) luxury car brands Jaguar and Land Rover to Tata Motors (TTM) closed Wednesday. Tata announced it purchased the brands for $2.3 billion and Ford will contribute around $600 million to the Jaguar-Land Rover pension fund. Ford originally purchased Jaguar for $2.5 billion and Land Rover for $2.7 billion. American depositary shares of Tata Motors, which trade on the NYSE, fell 6.8% to $16.18 on the news.In the Indian technology sector, Satyam Computer (SAY) has entered into a strategic partnership with SAP (SAP) for the Middle East and North Africa region, according to the Business Standard. ADR shares of Satyam finished down 1.4% to $23.82. Indian banking ADRs came under selling pressure Wednesday after Goldman Sachs cut by 32% the price target for Icici Bank (IBN), citing concerns that Indian banks will report lower revenue growth due to slowing loan and fee income growth. ADR shares of Icici fell sharply by 5.3% to $40.69, and HDFC Bank (HDB) lost 2.6% to $101.75. Some of the few Indian ADRs to advance on the American exchanges was Internet network and commerce company Sify Technologies (SIFY) and global communications firm Tata Communications (TCL). ADR shares of Sify rose 2.7% to $4.30, and Tata Communications advanced 1.8% to $28. 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.