Updated from 5:31 p.m. EDT

Indian markets extended gains for a second day in row Thursday, led by a strong showing by stocks in the technology sector. However, market participants in the region remained cautious on concerns over rising inflation and a U.S.-led global slowdown.

Indian stocks experienced another volatile trading session that saw the Bombay Stock Exchange Sensitive Index briefly cross the psychologically important 16,000 level, before closing up 82.15 points, or 0.5%, at 15,832.55.

In the Indian biotechnology sector,

Dr. Reddy's Laboratories

(RDY) - Get Report

announced it has purchased Italian generic-drug maker

Jet Generici

for an undisclosed price. The deal was made through Dr. Reddy's Italian subsidiary, Pharma Italia SpA. "We believe this strategic investment will generate substantial opportunities for value creation in one of the fastest growing generic markets of the world," V.S. Vasudevan, president and head of European operations, said in a statement. American depository shares of Reddy's closed up 1.8% at $15.31.

Indian banking major

Icici Bank

(IBN) - Get Report

said it has bought back and retired $50 million of $2 billion 6.625% bonds that were set to mature in 2012. The bonds were originated by Icici's Bahrain branch. Shares of Icici closed essentially flat at $39.40.

Indian global communications firm

Tata Communications

(TCL)

denied rumors Thursday that it was holding talks with Singapore investor

Temasek Holdings

or any private equity firms to sell a stake in its retail and broadband unit, according to

Reuters.com

. Shares of Tata advanced 4% to $27.29.

Leading the Indian ADRs on the upside Thursday were

Satyam Computer

(SAY)

, which rose 4% to $24.26, and

Mahaanagar Telephone

(MTE)

, which advanced 1.9% to $5.20.

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

Asian markets advanced Thursday on speculation that Chinese officials will restrain from raising interest rates with China's economy now showing signs of cooling off. Speculation began after the Asian Development Bank (ADB) cut its 2008 growth forecast for China, citing lower demand for exports caused by the global slowdown in countries like the U.S., Japan and Europe.

"Rising inflation, coupled with a more severe than expected deterioration in the global economy and weak property and stock markets, could cap China's growth to 7 percent this year," the ADB said. China's red hot economy grew by 11.4% in 2007.

China's Shanghai Composite Index rose 98.36 points, or 6.5%, to 3,516.33, and the Hang Seng Index advanced 392.20 points, or 1.6%, to 24,264.63. Markets in Hong Kong will be closed on Friday for a holiday.

Chinese language Internet search giant

Baidu.com

(BIDU) - Get Report

is reportedly entering the WiMax search market in Chinese cities like Shanghai and Shenzhen, according to sources close to the situation. American depository shares of Baidu finished up 1.8% higher at $286.64.

Piper Jaffray added Chinese solar company

Yingli Green Energy

(YGE)

to its Alpha List with a buy rating and slapped a $65 price target on the stock. Piper said Yingli has enough polysilicon to last through 2008 and should increase its polysilicon supply for 2009 to 60%. Shares of Yingli traded up by 5% to $21.24.

Elsewhere in the Chinese solar sector,

LDK Solar

(LDK)

announced it has inked a 10-year deal to supply 640 megawatts of multicrystalline solar wafers to Moser Baer Photo Voltaic, a subsidiary of

Moser Baer India

. Shares of LDK rose on the news by 5% to $31.62.

Chinese interactive entertainment media company

Shanda Interactive Entertainment

(SNDA)

confirmed rumors that president Jun Tang has left the company to pursue other interests. Tang will be replaced by Executive Senior Vice President and Chief Technology Officer Qunzhao Tan, a co-founder of the firm. Shanda also named co-founder Danian Chen as the chief operating officer. Shares of Shanda ended down 0.5% at $29.82.

Rumors were circulating that Chinese online game operator

The9

(NCTY) - Get Report

is looking to take a 12.5% stake in South Korean game developer

G10

, a division of online gaming company

T3 Entertainment

, according to

Chineseinvestors.com

. The report said the deal could close in early April, but neither company was responding to the rumors. Shares of The9 closed essentially flat at $20.30.

Leading the advancers among Chinese ADRs were,

Sinopec Shanghai Petrochemical

(SHI) - Get Report

, which traded up 7% to $38.20;

Home Inns & Hotels Management

(HMIN)

, which added 6.8% to $22;

China Natural Resources

(CHNR) - Get Report

, which closed up by 6.3% to $20; and

Longtop Financial Technologies

(LFT)

, which ended up 6% to $18.90.

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.