Indian stocks fell Tuesday, snapping a three-day winning streak, as traders returned to their desks after a long holiday weekend. Inflation concerns were cited as the main culprit for the selling pressure after crude oil hit record high prices and India's inflation rate, measured by the wholesale price index (WPI), hit a new three-and-a-half year high at 7.83% on Friday. Traders said the continued pressure on inflation might force the central bank to hike interest rates just as the Indian economy is losing steam.
"We saw some profit-booking in the market, but that has been the case after every consecutive rally. There was not much buying in the market as institutions kept selling, fearing that inflation may move further up," said a local dealer.
The Bombay Stock Exchange's Sensex Index finished down 204.76 points, or 1.17%, to 17,230.18. Here's a look at how some India-based American depositary shares traded in the U.S. Tuesday.
Satyam Computer Services (SAY), India's leading information technology (IT) company, announced it has inked a deal with GE Healthcare, a division of General Electric (GE), to support customers using GE Centricity Enterprise software. American depositary shares of Satyam Computer, which trade on the NYSE, fell 1.4% to $25.97.Elsewhere in the Indian IT sector, shares of Infosys Technologies (INFY - Get Report) fell 2.6%, despite the bullish comments the company received from Paul Hermelin, the CEO of Europe's largest IT group Capgemini. Hermelin told Reuters that Indian IT firms like Infosys and Tata Consultancy Services can easily move into Europe in search of growth as the U.S. market slows down. "The penetration of Europe the U.S. way can last three to four years," he said. "They frankly can enjoy many, many quarters of high growth in Europe." Shares of Infosys lost $1.19 to $44.32.