Shares in India continued to slide lower on Tuesday for the third day in a row as the Sensex Index broke below the psychologically key area of 15,000. Investors witnessed extremely high volatility as bank and information technology shares led the Sensex to its lowest level on the year at 14,645.31, before the index snapped back sharply by 244 points.
Fears of an interest rate hike, political uncertainty and rising crude oil prices which add to already high inflation readings continue to worry market players in the Far East.
"None of these issues are likely to be resolved in near term. And so, further correction in the market seems likely," said Manishi Raychaudhuri, an analyst at UBS Securities India.
The Bombay Stock Exchange's Sensex Index slipped 176.85 points, or 1.2%, to 14,889.25. The Sensex has now lost over 25% on the year since January. Here's a look at how some India-based American depositary shares traded in the U.S. on Tuesday.
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Indian information technology and consulting company
(INFY - Get Report)
and Indian information technology service provider
Satyam Computer Services
had their price targets lifted by Morgan Stanley. In a note to clients, Morgan analysts Vipin Khare and Gaurav Rateria said a weak rupee, sustained demand and a better earnings outlook imply lower risk to share prices. The firm raised its price target for Infosys by 12.1% and increased its target for Satyam by 12.7%. American depositary shares of Infosys, which trade on the
, lost 2.5% to $45.73, and American depositary shares of Satyam moved lower by 2.2% to $26.10.