Stocks in India dove Friday as selling pressure accelerated following the release of revised government inflation figures that disappointed Far East market players.
Preliminary inflation data showed India's wholesale price index (WPI) rose 7.82% for the week ending on May 10 from a year ago, vs. 7.83% from a week earlier. However, the government upwardly revised inflation to 8% for March 15 from an earlier estimate of 6.68%. Analysts said the rising inflation figures are a direct result of record-high energy and commodity prices.
"Inflation may hit double-digits in the next few months if oil prices and other commodity prices remain at current levels," said Robert Prior-Wandesforde, a senior economist at HSBC Holdings. "The pressure will intensify to raise the cash reserve ratio and repurchase rate."
The Bombay Stock Exchange's Sensex Index lost 257 points, or 1.5%, to 16,649.64. Here's a look at how some India-based American depositary shares traded in the U.S. Friday.Shares of Rediff.com (REDF), an India-based online provider of news, information and shopping services, plunged 10% after the company said fourth-quarter profits dropped 50%. The company said net income was $1 million, or 3 cents per American depositary share, vs. $2 million, or 7 cents a share, from a year ago. Revenue for the fourth quarter rose 7% to $9.1 million, vs. Wall Street estimates of $9.3 million and revenue for the full-year ending on March 31, 2008, jumped 13% to $32.25 million, vs. $28.68 million for the prior fiscal year. American depositary shares of Rediff, which trade on the Nasdaq, lost 86 cents to $7.65 on above-average trading volume.