Monday's Asia ADR Recap
Heavy selling swept through the Indian equities markets on Monday after crude oil spiked higher, driving fears among institutional money managers that corporate profits for the 2008 fiscal year will be eaten way. Market bulls not already on the ropes from a hot inflation number reported on Friday are becoming increasingly concerned that an interest rate hike is inevitable and that crude oil is destined to hit $150 a barrel.
"Until oil prices start falling and global conditions improve, markets will continue to be under pressure," said Mihir Vora, who is head of equities at HSBC Asset Management.
U.S.-based investment banking giant Morgan Stanley (MS) cut its December 2008 fair value target for India's Sensitive Index by 9% to 13,224, vs. its previous target of 14,450 set in April. In a note to clients, Morgan analyst Ridham Desai said: "The turmoil in global financial markets, coupled with the slowing of growth and resurgence of inflation, has shaken our confidence."
The Bombay Stock Exchange's Sensex Index fell 277.97 points, or 1.9%, to 14,293.32. Here's a look at how some India-based American depositary shares traded in the U.S. on Monday.According to CNet.com, Indian information technology major Infosys (INFY) has developed holographic mobile phones that will be able to project, capture and send 3D images for applications such as 3D films, games, medical scans and education aids. The company said it plans to release the devices by 2010. "Holographic handsets have the capability of enriching the user experience, with an actual 3D experience and higher-quality images. This gives users a more realistic experience in areas like gaming, medicine, movies etc," said an Infosys company representative. American depositary shares of Infosys, which trade on the Nasdaq, traded up 1.5% to $45.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV