Tuesday's Asia ADR Recap
India's Sensex Index broke below the psychologically important 14,000 level during intraday trading on Tuesday as market players in the Far East speculated that the ruling Congress Party will have a difficult time convincing India's main Communist Party, an important alley, to agree on the India-U.S. nuclear accord when the two parties meet on Wednesday.
The Communist Party has threatened to pull its parliamentary support for the ruling party if it continues to support the controversial nuclear deal with the U.S. Analysts in the region said that if the political heavyweights can't come to an agreement, it could force the nation into early elections.
"Investor confidence is at a low, as the market is flooded with all kinds of negative news flow, primarily related to political and macroeconomic front," said VVLN Sastry, chief executive of First Call India Equity Advisors.
The Bombay Stock Exchange's Sensex Index dropped 186.74 points, or 1.3%, to 14,106.74. The Sensex has now lost a total of 10% in the last five trading sessions. Here's a look at how some India-based American depositary shares traded in the U.S. on Tuesday.Tata Communications (TCL), an Indian communications solutions provider, announced it has inked a deal with South African government-controlled Eskom and Transnet to acquire a 30% stake in South African-based fixed-line operator Neotel, bringing its total stake to a majority level. The company didn't release the financial details of the deal, but it said the agreement would give it and Tata Africa a 56% total stake in the South African telecommunications firm. American depositary shares of Tata, which trade on the NYSE, dropped 4.3% to $16.97.
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