Updated from 5:10 p.m. EDT
Indian stocks finished lower Thursday as selling pressure hung over the markets following the monthly settlement in derivative contracts, which happens on the last Thursday of every month.
Comments out of Finance Minster Palaniappan on India's growth prospects also hurt equities in the Far East. Palaniappan told
that India's economy may grow at the slowest rate in four years for the next 12 months due to a reduction in foreign capital inflows and exports from the global slowdown. The Bombay Stock Exchange Sensitive Index closed down 71.27 points, or 0.4%, at 16,015.56
Auto analysts expressed concerns about
acquisition of luxury auto brands Jaguar and Land Rover. "There is a likelihood that there will be pressure on the profit after tax in the short term as it is still slightly unclear how Tata will fund the acquisition," said Enam Securities' auto analyst Sahil Kedia. American depositary shares of Tata Motors, which trade on the
, continued to slide, closing down 3.4% at $15.63.
A report from
said Indian IT company
is looking to create hundreds of IT jobs in the U.K. after the firm sets up a software development center outside of London. The company plans to create the center to take advantage of tax breaks offered by the British government and further its expansion into Europe. Wipro ADS ended essentially flat at $11.26.
Elsewhere in the Indian technology sector,
announced it has partnered with U.S.-based business software developer
to establish a Pega Business Process Management Center of Excellence at Satyam's Global Solutions Center in Cyberjaya, Malaysia, according to the
. Shares finished 4.2% lower at $22.82.
Indian mining company
announced it has been added to the S&P India 10 Index. The S&P India 10 is made up of 10 of the largest and most liquid Indian firms that trade on developed market exchanges. Sterlite was one of the few Indian ADRs to advance Thursday, trading up 2.3% to $18.01.
Some leading decliners among Indian ADRs were
, which lost 6.4% to $26.20;
, which fell 3% to $39.47; and the
Morgan Stanley India Investment Fund
, which closed down 2.7% at $37.68.
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 mixed Thursday for the second day in a row with stocks on China's mainland continuing to trade off and shares in Hong Kong advancing slightly. Shares in China couldn't escape selling pressure as fears mount about the impact of massive amount of shares that will soon hit the market once lock-up periods expire. Dealers in the region said that by the end of April, there will be around 1.6 trillion yuan worth of shares that will come off lock-up periods and become available to trade freely.
"The expiration of the lock-up period for shares will add to the selling pressure and dampen market sentiment, affecting other heavyweights like oil refiners and banks," said Liu Youcheng, an analyst at Hong Yuan Securities.