Stocks in India broke a five-day losing streak Wednesday after the finance ministry released a statement that quashed rumors that the government was considering a new tax proposal to make up for losses among state-run oil refiners. The rally was fueled by short-covering ahead of the expiration Thursday of May equity derivatives contracts. The rally was led by the banking, telecom and metal sectors.
"Banking stocks were up during the day because these have been the worst hit over the past few days. There was across-the-board selling in banks after the State Bank had recently hiked deposit rates," said Hitesh Agrawa, head of research at Angel Broking.
The Bombay Stock Exchange's Sensex Index rose 249.78 points, or 1.5%, to 16,217.78. Here's a look at how some India-based American depositary shares traded in the U.S. Wednesday.
Tata Motors (TTM), India's top automaker, reported its fourth-quarter net profit fell 7% due to surging prices for oil, steel, aluminum and components as well as a challenging interest rate environment. The company said net profit declined to 21.67 billion rupees ($509 million), vs. 21.69 billion rupees a year earlier and total income jumped 10.4% to 359.18 billion rupees. The company said it hit a record for total units sold for the full year at 585,649, vs. 580,280 units last year.The company's board also approved a plan to raise $1.7 billion through three simultaneous rights issues of various securities to help the company finance its deal to buy luxury auto brands Jaguar and Land Rover from Ford Motor (F). American depositary shares of Tata, which trade on the NYSE, closed down 2% at $14.53 on 2 times the stock's average daily trading volume.