Stocks in India continued to slide on Monday registering the largest monthly decline in 16 years, after the Left allies of the United Progressive Alliance coalition government threatened to withdraw their support for Prime Minister Manmohan Sigh if the Congress singed a nuclear agreement with the United States. Also weighing on investor sentiment in the Far East were rising inflation concerns following record high crude oil prices that touched $143 a barrel in pre-market trading on the New York Mercantile Exchange.
"It is a complete breakdown of confidence. The nervousness is quite high," said Deven Choksey, CEO of the brokerage KR Choksey. "Panic is leading to further panic. We need some comforting words that suggest the fundamentals are still intact and inflation is being addressed to arrest this free fall."
The Bombay Stock Exchange's Sensex Index dropped 340.62 points, or 2.47%, to 13,461.60. The Sensex is now down 34% year-to-date, its worst six-month showing on record. Here's a look at how some India-based American depositary shares traded in the U.S. on Monday.
Shares of Rediff.com (REDF) soared 21% after Darren Chervitz, director of research and co-portfolio manager at Jacob Internet Fund (JAMFX), mentioned the stock positively during a segment on CNBC today. Chervitz said Rediff.com is the leading independent portal in India and is a strong acquisition target. He mentioned his fund has been adding to its long position in the name recently. American depositary shares of Rediff.com, which trade on the Nasdaq, rose $1.37 to $7.77.ICICI Bank (IBN), India's biggest private sector lender, and HDFC Bank (HDB - Get Report), India's largest mortgage company, announced they will hike lending and deposit rates effective from July 1. HDFC said it will raise its prime lending rate for adjustable or floating loans by 50 basis points to 11%, and the new fixed rate loan will be 14%, up 75 basis points. ICICI Bank said it will increase the floating rate for consumer loans by 75 basis points to 13.50%. The bank also bumped up its benchmark advance rate for corporate borrowing by 75 basis points to 16.50%. Both banks also announced they will raise deposit rates between 50 and 100 basis points. Shares of ICICI Bank fell 3% to $28.76, while HDFC Bank rose 10 cents to $71.66.