Indian shares closed lower Wednesday as investors in the region locked in profits, breaking a two-day rally. Market players in India said investor fears of higher inflation readings and political concerns over a nuclear deal meeting with the UPA Government damaged sentiment.
"We've had a smart two-day rally," said Jayesh Shroff at SBI Asset Management. "Until the other problems of high oil prices and inflation remain, markets will struggle to perform."
The Bombay Stock Exchange's Sensex Index fell 274.59 points, or 1.8%, to 15,422. Here's a look at how some India-based American depositary shares traded in the U.S. Wednesday.
Susquehanna Financial downgraded Indian technology services company Infosys Technologies (INFY - Get Report) from positive to neutral, citing valuation. In a note to clients, analyst James Friedman said: "Infosys has rallied almost 50% since its March lows, and has approached our $50 price target. Our analysis suggests the shares look rich on a PEG and P/S basis." Friedman suggested that investors consider swapping Infosys for Satyam (SAY) or Cognizant Technology Solutions (CTSH) for their cheaper PEG ratios. American depositary shares of Infosys, which trade on the Nasdaq, fell 2.8% to $45.43, while ADR shares of Satyam dipped 2.5% to $26.16; and shares of Cognizant Technology finished unchanged at $35.73.India-based Tata Communications (TCL) announced it has acquired a 50% stake in telecommunications services and integrated IT solutions provider China Enterprise Communications through an equity joint venture to sell network services in China. The financial details of the deal were not disclosed and the venture will need approval from the Chinese government and regulators. Shares of Tata Communications plunged 4.4% to $19.37.