India's rupee traded higher for the second day in a row helping to lift stocks on the Bombay exchange. Market participants saw investor sentiment rise as speculation mounts that investors from abroad will continue to bargain hunt in beaten-up emerging markets like India. The Sensex Index rose by 155.62 points, or 0.9%, to 17,806.19.

India's Railway Minister Lalu Prasda announced plans to reduce transportation charges -- cutting freight rates for gasoline and diesel by 5% and cutting fly ash by 14%. "The cut in freight rates for fuel and fly ash have boosted stocks of refiners and cement makers," said Sandeep Neema, asset manager at J.M. Financial Mutual Fund in Mumbai.

Investors looking for more ways to play the emerging market boom can now look at two new India exchange-traded funds. The

WisdomTree India Earnings Fund

(EPI) - Get Report

is a pure play that will track 150 Indian companies based on earnings performance. Shares of EPI began trading Monday and finished Tuesday up 1.1% at $26.16. On March 1 the

PowerShares India Portfolio

(PIN) - Get Report

is set to launch, and will track 50 Indian stocks, with the goal of representing the overall Indian stock market.

Leading the advance among Indian ADRs were

WNS Holdings

(WNS) - Get Report

, up 5.1% to $14.81,

Sterlite Industries India

(SLT) - Get Report

, up 4.3% to $21.24, and

Morgan Stanley India Investment Fund

(IIF) - Get Report

, up 2.2% at $43.92.

Indian global communications firm

Tata Communications

( TCL) signed an agreement with

China Enterprise Netcom

to expand its networks services through VPN connections. The agreement will help Tata customers' access global networks in 347 Chinese cities, according to

indiainfo.com

. Shares of TCL traded up 6.2% to $25.88 on light volume.

Among the few Indian ADRs that bucked the positive trend Tuesday was

HDFC Bank

(HDB) - Get Report

. Shares of HDFC fell 1% to $113.18 on above-average trading volume. Market players contributed to the decline due arbitrage pressure from its proposed merger with the

Bank of Punjab

. HDFC did receive some positive news from credit ratings agency Fitch Tuesday after the company affirmed its positive rating on the bank.

Be sure to check out the

Far East Portfolio

at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

China Recap

China's stock market has declined nearly 20% this year, due in part to the plans of listed companies to offer new shares to the public. The fear in the Far East is that these new stock offerings will flood the Chinese markets with excess liquidity and eventually lead to lower equity prices. China's securities regulator reigned in the overzealous firms Tuesday warning listed companies to stop flooding the market with shares. "Refinancing by listed companies is an important function of the capital market, but it should never become raking in money maliciously," said a spokesman for the Chinese Securities Regulatory Commission.

The Shanghai Composite Index ended a volatile session to close up 45.65 points, or 1.1%, to 4,238.18. Stocks in Hong Kong put in a strong performance Tuesday as investors bid up shares in front of the government's annual budget set for Wednesday. The Hang Seng Index traded up 445.61 points, or 1.9%, to 23,714.75.

M&A chatter was a hot topic in the Chinese airline sector.

China Eastern Airlines

(CEA) - Get Report

rejected a potential merger with

Air China

. Executives at China Eastern said the proposed merger wouldn't be in the best interest of shareholders, and they'll instead look for other strategic alternatives. Shares of CEA fell 5% to $63.43 and

China Southern Airlines

(ZNH) - Get Report

, the largest airline in terms of fleet size, fell 1% to $48.58.

Chinese online game operators continue to shine and report strong earnings numbers. Shanghai-based online gaming firm

Shanda Interactive Entertainment

( SNDA) reported a 52% rise in fourth-quarter revenue due to strong demand for new games. Shares of Shanda exploded higher by 13% to $34.89 as short-sellers scrambled to cover positions. Shanda has about 24% of its float sold short.

The online gaming sector isn't the only place investors are finding earnings winners out of the Far East. Chinese insurance and brokerage firm

CNinsure

(CISG)

reported a 105% rise in fourth-quarter net income and an 80.9% jump in fourth-quarter net revenue. Investors cheered the strong report and showed their love for the shares, taking CISG up 17% to $11.50. Interestingly, after the strong earnings report Cninsure's CFO David Tang resigned, citing personal reasons.

Susquehanna International Group issued some bullish comments on Shanghai-based hotel chain

Home Inns & Hotels Management

(HMIN)

. The brokerage firm upgraded the stock to positive from neutral citing an attractive valuation and accelerated growth in hotel expansion in China. Shares of HIMIN closed up 5% to $28.34.

Another Chinese ADR receiving positive analyst comments Tuesday was alternative energy play

Trina Solar

(TSL)

. Deutsche Bank raised its price target on Trina form $69 to $76, citing strong margin trends. The price target boost did little to help shares of Trina, which fell 1% to $34.10.

Be sure to check out the

Far East Portfolio

at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.

For more on Asia, check out

Daniel Harrison's coverage

at

TheStreet.com

.

Stockpickr is a wholly owned subsidiary of TheStreet.com.