India's Sensex Index fell below the psychologically important 16,000 level on Tuesday as political turmoil heated up in the Far East. The ruling United Progressive Alliance government is under heavy attack from left parties not in favor of increasing fuel prices. The Bharatiya Janata Party went as far as to blame the UPA for wrecking the economy and potentially causing a crisis if it hikes fuel prices.
"The market upside is capped and so I suggest investors to invest in defensive sectors. In fact, every rally should be used as an opportunity to offload commitments because inflation and spiraling commodities prices are still a concern for the market," said Jigar Lodaya, senior manager at ShareKhan.
The Bombay Stock Exchange's Sensex Index slipped 100.52 points, or 0.63%, to 15,962.56. Here's a look at how some India-based American depositary shares traded in the U.S. on Tuesday.
Indian auto giant
was hit with a downgrade by Moody's Investors Service for its corporate family rating, following the company's announcement that it had completed the purchase of
luxury auto brands Jaguar and Land Rover for $2.3 billion. Moody's lowered its rating to two levels below investment grade and said its rating outlook is negative. Shares of Tata finished essentially flat to $13.30.
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, a leading Indian information technology company, announced it has been awarded two patents by the U.S. Patent and Trademark Office for holography and mobile communications. The holography patent is for 3-D communications using computer-generated holography to send and receive information required to make a lightweight handset. The mobile patent is for an Internet Protocol-based solution to support generic mobility over heterogeneous networks. Shares of Infosys moved down 2% to $46.77
Elsewhere in the Indian technology sector,
( SAY) fell 3% after London-based
said it has added new claims to its Texas fraud lawsuit against the company. Unpaid said it has added misrepresentation and failure to provide good title, in addition to earlier allegations of fraud it has claimed were committed by Satyam. The new claims could run up potential damages well above $1 billion. Shares of Satyam dropped 2.2% to $27.41.
Leading the losers list among Indian ADRs Tuesday were
, which dropped 4.3% to $20.85;
, which lost 3.9% to $90.68; and
Dr. Reddy's Laboratories
, which slid 3.8% to $16.06.
Be sure to check out the
at Stockpickr.com every night to find out which stocks in India and China are making big moves and announcing major news.
Stocks in mainland China and Hong Kong fell Tuesday lead by large losses in
China Netcom Group
. All three stocks reopened for trading after being suspended since May 23 due to a reorganization effort of the state-controlled sector by the Chinese government.
"The retreat of China United Telecommunications shares triggered profit-taking in the broader telecoms sector, dragging down the major indexes," said Ding Chaoyu at United Securities.
Analysts also blamed losses in Hong Kong shares on the S&P downgrades of U.S.-based investment banks
( MER) and
"The S&P downgrades are simply a reminder that financial system normalization will take time and a lot of capital, a fact that markets have shrugged off for a few weeks," said Howard Wang of JF Asset Management.
The Shanghai Composite Index fell 22.65 points, or 0.7%, to 3,436.40, and Hong Kong's Hang Seng Index dove 455.60 points, or 1.8%, to 24,375.76. Here's a look at how some China-based American depositary shares traded in the U.S. on Tuesday.
In an unprecedented development, a group of international record companies, including Universal Music Group, EMI Group PLC, Sony BMG Entertainment, Warner Music Group and some local Chinese companies, is calling for advertisers to boycott China's top search engine
over music-MP3 piracy. The coalition of companies has issued a statement asking advertising companies to "carefully consider whether they should continue to place advertisements on pirating media." American depositary shares of Baidu, which trade on the
, closed up 1.2% to $342.09.
Chinese residential real estate developer
Xinyuan Real Estate
announced that its first-quarter revenue exploded 447% year over year and that first-quarter net income soared 379.9% year over year due to new developments located outside of Zhengzhou. The company said first-quarter net income was $33 million, vs. $6.9 million a year ago, and total revenues for the first-quarter were $125 million, vs. $22.9 million a year earlier.
Looking forward, the company said that 2008 total revenues will come in between the range of $550 million to $630 million, representing a year-over-year growth rate of around 77% to $103%, and net income will be between $60 million to $70 million, representing a year-over-year growth rate of about 31% to 53%. Shares of Xinyuan finished down 2% to $8.66.
Roth Capital Partners started coverage on Chinese online game developers
Giant Interactive Group
, saying the selloff in shares caused by the major earthquake that hit Sichaun is reflecting a worst-case scenario. Analyst Adam Krejcik initiated Giant Interactive with a buy rating and an $18 price target. He gave Perfect World a buy rating and a $37 price target. Shares of Perfect World traded up 1% to $25.79, and shares of Giant added 1% to $13.87.
Among the leaders in China-based stocks and Chinese ADRs Tuesday were
, which soared 36% to $7.17;
Simcere Pharmaceutical Group
( SCR), which jumped 9.9% to $14.57;
, which climbed 4.6% to $18.84; and
, which added 3.3% to $89.06.
Be sure to check out the
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
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