Updated from 5:28 p.m. EDT
Indian stocks advanced Tuesday led by positive fourth-quarter results out of global IT player
(INFY - Get Report)
. Investor sentiment in the Far East shot up off the strong report from Infosys, and market players are now hopeful that the firm's bullish forecast could be signaling a new boost to India's economy.
"More software development work will come to India as price pressures bite into U.S. companies," said Arun Kejriwal, head of research firm KRIS. The Bombay Stock Exchange's benchmark 30-stock Sensex Index climbed 346 points, or 2.2%, to 16,154 points.
Infosys Technologies posted a 32% rise in fourth-quarter revenue and a 20% jump in net income, and it forecasted full-year revenue growth of 19% to 21%. Revenue for the fourth quarter came in at $1.14 billion, vs. $863 million for the prior year and net income was $311 million, or 54 cents a share, vs. $259 million, or 45 cents a share, for the previous year. Infosys sees full-year EPS of $2.31 to $2.35, vs. Wall Street estimates of $2.37 and full-year revenue of $4.97 billion to $5.05 billion, vs. Wall Street estimates of $5.24 billion. Infosys also declared a special dividend of 50 cents per American depositary share. Infosys, whose ADS trade on the
, rose 8.5% to $39.67.
The positive results out of Infosys helped to spark buying interest in the entire Indian technology complex. Shares of
Patni Computer Systems
rose 5.6% to $12.75;
advanced 4% to $11.59; and
jumped 3.4% to $17.88.
Elsewhere in the Indian information technology sector,
Cognizant Technology Solutions
(CTSH - Get Report)
received some positive comments from the brokerage arm of Citigroup, which reaffirmed its buy rating and $57 price target on the stock.
Cognizant also announced a new alliance with CTC Laboratory Systems, a subsidiary of Japan's
, to help Japanese pharmaceutical firms enhance efficiencies with drug discovery and development, according to
. Shares of Cognizant rose 8.7% to $29.32.
Another winner in the Indian information technology sector Tuesday was
. Shares of Sat yam ripped higher Tuesday after the company announced it has formed a strategic alliance with
to build integration packs for Oracle products like Agile PLM and E-Business Suite. Shares of Satyam surged higher by 8.9% to $24.57.
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 stocks rebounded Tuesday as value buyers stepped in to purchase beaten-down shares in both Hong Kong and China's mainland. Dealers in the region speculated that bargain hunters were out in full force buying oversold stocks after the Monday's huge drops in Chinese stocks.
"Some investors are coming back to buy some bargains as the decline on the market has gone too far," said Wu Kan, a fund manager at Dazhong Insurance. The Shanghai Composite Index added 51.68 points, or 1.6%, to 3,348.35, and Hong Kong's Hang Seng Index rose 90.13 points, or 0.4%, to 23,901.33.
Shares of China's largest chipmaker
Semiconductor Manufacturing International
(SMI - Get Report)
exploded 36% higher on heavy volume Tuesday after rumors circulated that the company was close to selling a stake to a strategic investor. The company said it was not holding discussions related to acquisitions. American depositary shares of SMI finished up $1.13, at $4.20.
Shares of Chinese air carrier
China Eastern Airlines
fell 5.6% Tuesday after the company announced a net profit of 585.5 million in 2007, vs. a net loss of 3 billion yuan in the prior year. Revenues rose by 14% in 2007 to 43.5 billion yuan, vs. 38.2 billion yuan in 2006. Despite returning to a net profit, investors weren't impressed that most of CEA's profits came from the Chinese yuan's rise against the U.S. dollar. Shares of CEA finished down $2.47 at $41.38.