Indian shares closed lower Wednesday as investors in the region locked in profits, breaking a two-day rally. Market players in India said investor fears of higher inflation readings and political concerns over a nuclear deal meeting with the UPA Government damaged sentiment.

"We've had a smart two-day rally," said Jayesh Shroff at SBI Asset Management. "Until the other problems of high oil prices and inflation remain, markets will struggle to perform."

The Bombay Stock Exchange's Sensex Index fell 274.59 points, or 1.8%, to 15,422. Here's a look at how some India-based American depositary shares traded in the U.S. Wednesday.

Susquehanna Financial downgraded Indian technology services company

Infosys Technologies

(INFY) - Get Report

from positive to neutral, citing valuation. In a note to clients, analyst James Friedman said: "Infosys has rallied almost 50% since its March lows, and has approached our $50 price target. Our analysis suggests the shares look rich on a PEG and P/S basis." Friedman suggested that investors consider swapping Infosys for


( SAY) or

Cognizant Technology Solutions

(CTSH) - Get Report

for their cheaper PEG ratios. American depositary shares of Infosys, which trade on the


, fell 2.8% to $45.43, while ADR shares of Satyam dipped 2.5% to $26.16; and shares of Cognizant Technology finished unchanged at $35.73.


Tata Communications

( TCL) announced it has acquired a 50% stake in telecommunications services and integrated IT solutions provider

China Enterprise Communications

through an equity joint venture to sell network services in China. The financial details of the deal were not disclosed and the venture will need approval from the Chinese government and regulators. Shares of Tata Communications plunged 4.4% to $19.37.

U.S.-based global Internet company



announced it has inked several new mobile deals in an effort to raise its presence in the Asia Pacific area. For India, the company said it will launch its Yahoo! oneSearch partnership, a service that allows users to get search results on mobile phones, with mobile operator

Mahanagar Telephone Nigam


. The company said oneSearch will be the default search engine on Mahanagar's mobile network. Shares of Mahanagar Telephone finished up 3 cents at $4.46.

According to

El Financiero

, Indian automaker

Tata Motors

(TTM) - Get Report

plans to build a $150 million factory in Mexico through a joint venture with Mexico's

Group Autofin

. The plant will be used to assemble and produce 50,000 cars a year for export to South America. Shares of Tata Motors fell 2% to $12.

Be sure to check out the

Far East Portfolio

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

China Recap

Stocks in mainland China and Hong Kong jumped higher Wednesday, led by heavyweight oil refiners, on speculation that the government is close to hiking domestic fuel prices. Bargain-hunting also drove shares higher as market players snapped up shares of beaten-down Chinese stocks that many feel are reasonably priced.

"When you've got China trading at a lower earnings ratio than the


, you are going to attract investors," said Ben Collett, head of hedge-fund trading at Daiwa Securities SMBC

The Shanghai Composite Index closed higher by 146.36 points, or 5.2%, to 2,941.12, and Hong Kong's Hang Seng Index jumped 267.81 points, or 1.16%, to 23,325.80. Here's a look at how some China-based American depositary shares traded in the U.S. on Wednesday.

Chinese oil refiner ADRs surged higher off the rumors of a possible fuel-price hike.

China Petroleum & Chemical

(SNP) - Get Report

soared 5.1% to $104.35;

Sinopec Shanghai Petrochemical

(SHI) - Get Report

traded up 4.8% to $40.83; and


(PTR) - Get Report

added 1.9% to $134.53.

Chinese alternative energy company


(SOL) - Get Report

announced the pricing of a follow-on public offering of 9 million American depositary shares, with each representing two shares of the company, at $20.50. The company said that 8.58 million shares are new shares and 422,780 shares are being sold by certain shareholders, including CEO Xianshou Li. American depositary shares of ReneSola, which trade on the


, surged 3.4% to $21.49.

China Unicom

(CHU) - Get Report

squashed market rumors Wednesday that the company was contacted by

Apple Computer

(AAPL) - Get Report

to distribute the new 3G iPhone in China. According to

, an unnamed company executive said, "This rumored cooperation is nonsense. The company will not approach Apple at this moment when the nation's telecom regrouping has not come to an end, let alone discuss the iPhone deal." Shares of China Unicom finished higher by 10 cents at $19.42.

Leading the gainers list among China-based stocks and Chinese ADRs Wednesday were

Huaneng Power International


, which surged 6.7% to $35;

Asia Time

( TYM), which added 3.9% to $4.70;

Jinpan International


, which rose 3.6% to $37.10; and

Solarfun Power Holdings

( SOLF), which closed higher by 2.5% at $22.18.

Be sure to check out the

Far East Portfolio

at 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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