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
luxury car brands Jaguar and Land Rover to
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
, fell 6.8% to $16.18 on the news.
In the Indian technology sector,
has entered into a strategic partnership with
for the Middle East and North Africa region, according to the
. 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
, 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
lost 2.6% to $101.75.
Some of the few Indian ADRs to advance on the American exchanges was Internet network and commerce company
and global communications firm
. 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.
Asian markets traded mix Wednesday with shares in Hong Kong adding to yesterday's large gains and stocks in China trading off slightly. Investors in China were holding off from buying equities as market players wait to see if a flood of shares that will come off lockup periods will hurt the market in the coming weeks.
"Any rebound won't be sustainable, as this will give investors the chance to unwind their positions, which will weigh on the market again," said Wang Junqing at Guosen Securities.
China's Shanghai Composite Index fell 22.76 points, or 0.6%, to 3,606.86, and Hong Kong's Hang Seng Index added 152.49 points, or 0.7%, to 22,617.01.
Merrill Lynch initiated coverage on the Chinese Internet gaming sector Wednesday. The firm slapped a buy rating on
(NTES - Get Report)
. Merrill also started coverage with a neutral rating on
. Perfect World ended up 0.2% at $24.91, Shanda added 1.7% to $30.51, Netease traded up 1.2% to $18.37, while Giant ended down 0.1% at $10.21 along with The9, which lost 1.3% to $20.05.