Updated from 5:39 p.m. EDTInvestors in India continue to experience extremes in volatility after the Sensitive Index rebounded Tuesday from earlier losses to snap a four-day losing streak. The Sensex mounted a comeback after falling as much as 185 points in the morning to close up almost 200 points. "To a large extent, negatives factors like inflation and slowdown in corporate growth have been discounted. There are expectations of higher industrial output numbers also. So the combination of these factors proved to be a silver lining," said Hitesh Sheth, head of technical research at Prabhudas Lilladher. The Bombay Stock Exchange's Sensex Index finished higher by 199.43 points, or 1.3%, at 16,123.15. The buying in the Far East found a home on the American exchanges with some of the largest gains seen in the Indian closed-end management and exchange-traded funds, which had all experienced heavy selling pressure the previous day. Today, the Wisdomtree Trust ( EPI) traded up 9.9% to $24.38; The India Fund ( IFN) finished up 16.4% to $46.19; and Morgan Stanley India Investment Fund ( IIF) advanced 13.6% to $39.15. Indian global information technology firm Wipro ( WIT) finished 5.8% higher at $10.88. Credit Suisse reinitiated coverage of the stock with a neutral rating. Analyst B Sing said in research note to clients, "the company might face some challenges going forward on account of a weak macro environment. Wipro expects its sequential revenue growth to remain weak over the forthcoming one-to-two quarters. Over the last three weeks, the company has witnessed a rise in the frequency of project cancellations and delays." Wipro also announced plans to add to its staff in China by creating 1,800 new positions in the next three years, according to Crippssears.com. Indian automaker Tata Motors ( TTM) said it plans to raise as much as 40 billion rupees ($1 billion) through the issuance of long-term securities in order. The offering will be used to help finance its planned purchase of luxury car brands Jaguar and Land Rover and to build the Nano car, according to Bloomberg. ADR shares of Tata Motors climbed 4% higher to $16.62. Some leading Indian ADRs Tuesday were Tata Communications ( TCL), trading up 12% to $24.80; HDFC Bank ( HDB), ripping 12.6% to $105.10; and Sterlite Industries India ( SLT), finishing up 6.6% at $19.72. 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.
Chinese business-to-business company Global Sources ( GSOL) posted adjusted fourth-quarter earnings of $12.5 million, or 26 cents a share, up from $9.3 million, or 20 cents a share, in the prior-year quarter. The company forecasted first-quarter revenue to come in between $39.5 million and $40.0 million, vs. Wall Street estimates of $39.7 million. Citigroup upgraded Global Sources from hold to buy with a price target of $17. A Citigroup analyst said "Although we believe that the company faces risks from a slowing U.S. and global economy, given its target customer base is export-oriented SMEs in China, as well as potential pricing pressure from its re-packaging of online products, we believe the risk-reward looks favorable as shares appear oversold and the 1H08
first-half 2008 outlook appears solid." ADR shares of Global Sources closed up 34.2% at $14.36. Chinese medical-device maker Mindray Medical International ( MR) announced it has agreed to buy Datascope's patient monitoring businesses for $202 million in cash. The move will help Mindray gain a stronger market position in the U.S. ADR shares of Mindray traded down 6.3% to $27.37. Some big gainers among the Chinese ADRs Tuesday were New Oriental Education & Technology ( EDU), advancing 13.5% to $63.58; Yanzhou Coal Mining ( YZC), climbing 10.2% to $78.13; Yingli Green Energy ( YGE), ripping 11.4% higher to $14.69; and iShares FTSE/Xinhua China 25 ( FXI), rising 9.7% to $146.45. 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.