Stocks in India crashed Wednesday after the government announced it will raise fuel prices due to the skyrocketing costs of crude oil. Oil Minister Muril Deora said diesel prices will rise by 9% and families will see an additional 17% hike in the price of a cylinder of cooking gas. The rise in diesel prices was initiated to help offset losses at state-controlled oil refiners.
"The markets reacted badly to the oil price hike, which might lead to inflation inching towards 9% and a possible rise in interest rates," said Manish Sonthalia, vice president for equity strategy at Motilal Oswal Financial Services.
The Bombay Stock Exchange's Sensex Index slipped 447.77 points, or 2.81%, to 15,514.79. Here's a look at how some India-based American depositary shares traded in the U.S. on Wednesday.
Indian information technology and consulting company Infosys Technologies (INFY - Get Report) announced it has inked an agreement to create a research center for advanced software technologies at the University of Southern California Viterbi School of Engineering. Under the terms of the agreement, Infosys and USC will conduct joint research in areas like software architecture, service oriented architecture and information integration, intelligent systems and agents, mobile wireless systems, sensor networks and CAD frameworks and tools for hardware and software. American depositary shares of Infosys, which trade on the Nasdaq, finished essentially flat at $46.69.WNS Holdings (WNS - Get Report), an Indian business process outsourcing service provider, announced it has appointed Steve Reynolds to a newly created position as managing director of North America. Reynolds, a 20-year industry veteran, will be in charge of driving revenue and sales growth and expanding markets in North America. Shares of WNS finished up 1% to $18.06.