Friday's Asia ADR Recap
06/27/08 - 05:15 PM EDT
Stockpickr Staff
Stocks in India crashed on Friday after investors panicked out of equities following the release of government data that showed inflation soared to a 14-year high. Also adding to inflation concerns in the Far East was crude oil, which touched a record high at over $141 a barrel, after OPEC's president Chakib Kheli told the French media that oil could reach $150 to $170 a barrel in the next few months.
India's wholesale price index inflation rate jumped to 11.42% for the week ending on June 14, vs. 11.05% from a week earlier. Analysts said the high inflation reading will force the Reserve Bank of India to continue on its rate hike path. "The trend still remains bearish and there is more pain in store for markets. Global cues and high crude prices will dictate the market move in the coming days. But clearly, the situation looks very grim. Political uncertainty will also keep investors out of the market," said Hitesh Agarwal, research head at Angel Broking. The Bombay Stock Exchange's Sensex Index plunged 619 points, or 4.3%, to 13,802.22. The Sensex Index has now fallen for six weeks in a row, the longest weekly losing streak in seven years. Here's a look at how some India-based American depositary shares traded in the U.S. on Friday. According to Reuters, social unrest broke out at car plant owned by India's largest auto maker Tata Motors(TTM Quote - Cramer on TTM - Stock Picks). Local villagers clashed with police, who fired tear gas and beat the protesters with batons as they attempted to force their way into the factory located in Singur. The villagers are upset because they say the car plant has forced them off of their farmland. Tata Motors plans to use the new plant to build the world's cheapest car, the Nano. American depositary shares of Tata Motors, which trade on the NYSE, slipped 6.4% to $9.97.
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