Stocks in India were in free fall on Tuesday, with the Sensex Index breaking below the psychologically important 13,000 mark for the first time since April 5, 2007. Far East market players cited a variety of reasons for the panic selling that swept across India, including political uncertainty around the nuclear accord, weak global cues, inflation fears, higher interest rates, surging crude oil prices and large selling from foreign institutional investors and local high-net-worth investors.
"Hedge funds are unwinding positions in a big way. The good company valuations, attractive levels -- everything is being ignored at this point of time, due to the huge redemption pressure faced by them," said Mehul Dedhia, assistant vice president of sales at Sharekhan.
The Bombay Stock Exchange's Sensex Index fell 499.92 points, or 3.71%, to 12,961.68. Here's a look at how some India-based American depositary shares traded in the U.S. on Tuesday.
India's largest automaker Tata Motors (TTM) said it will begin manufacturing of the ultra-cheap Nano minicar at a new factory in the fourth quarter of 2008. The company is building the new manufacturing facility at Singur in the eastern state of West Bengal to produce 250,000 of the world's cheapest car annually. "These manufacturing facilities would be expanded to meet the demand in the domestic and international markets in the future," said Tata Motors Chairman Ratan Tata in the automaker's annual report.Tata Motors also announced it will raise the price for its commercial vehicles by an average of 3% to make up for rising input costs. American depositary shares of Tata Motors, which trade on the NYSE, fell 4.3% to $9.61.