Updated from 5:49 p.m. EDTIndian stocks plunged Monday on fears that new accounting rules will depress fourth-quarter earnings. Traders in the Far East blamed the sharp losses on reports that the Institute of Chartered Accountants of India (ICAI) has asked companies to disclose all losses on derivative contracts for the current financial year. Market players believe the disclosure of these losses will have a large impact on fourth-quarter results "Sixty per cent of the fall in the market was due to uncertainties following the ICAI mandate that companies disclose their losses in credit derivatives which could spoil the earnings picture; inflation which could put cost pressures and reduce profits, weak global cues etc," said Rajesh Jain, director and CEO of Pranav Securities. The Bombay Stock Exchange Sensitive Index dove 726.85 points, or 4.4%, to 15,644.44, which now puts the index down 23% on the year and on track to register its worst quarterly performance. India's largest automaker, Tata Motors ( TTM), will invest 60 billion rupees ($1.5 billion) over the next four to five years to expand its existing manufacturing plants and set up a vehicle testing facility in Pune, Managing Director Ravi Kant said at a news conference Monday. Tata signed a memorandum of understanding with the Maharashtra government for the investment. American depositary shares of Tata Motors, which trade on the NYSE, finished the day down 1% to $15.62. Leading Indian information technology company Wipro ( WIT) announced it will expand its Chennai operations with a new facility at the Sholinganallur-ELCOT Special Economic Zone. The new facility will hold 35,000 seats and be built on 80 acres of land, according to Sudip Banerjeee, president of Enterprise Solutions for Wipro. Shares of Wipro closed up by 1.5% at $11.53. In the Indian banking sector, HDFC Bank ( HDB) and Icici Bank ( IBN) both racked up losses on concerns the central bank may raise interest rates and cash reserves for banks in an effort to fight off rising inflation. ADRs of Icici Bank fell 3.5% to $38.19, and HDFC shed 3% to $98.24. Among the few Indian ADRs to advance Monday were Patni Computer Systems ( PTI), which added 1.6% to $11.43, and Sify Technologies ( SIFY), which closed up 0.7% at $4.46. 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 online game developer and operator Giant Interactive Group ( GA) announced open beta testing for its new game, "Giant Online," drew 237,686 peak concurrent users on the first day. American depositary shares of Giant closed higher by 10% to $12.65 on above-average volume. Chinese leading fabless semiconductor company Vimicro International ( VIMC) announced a new milestone with the shipment of more than 5 million VC0336 web camera embedded processors. "As the most advanced web camera processor in the market today, the VC0336 has given notebook manufacturers an edge on Internet video applications in the era of Web 2.0," said Kevin Jin, president of Vimicro. Shares of Vimicro finished up 1% at $2.75. China's largest fixed-line phone company, China Telecom ( CHA), announced its full-year net profit for 2007 fell 13% due to consumers in China picking mobile phones over fixed-line phones. China Telecom said net profit for 2007 came in at 23.7 billion yuan, vs. 27.2 billion yuan in 2006, and full-year operating revenue rose 1.7% to 178.7 billion yuan, vs. 175.6 billion yuan from a year earlier. The company also said it lost 2.71 million subscribers, bringing total subscribers to 220 million. Shares of China Telecom fell 1% to $62.83. Chinese Internet portal company Sina ( SINA) announced that Yongji Duan has vacated his seat on the board of directors, effective immediately. Duan also gave up his position as chairman of the board on the compensation committee. The company gave no reason for Duan's departure and immediately appointed Yan Wang, current vice chairman of the board, to serve as acting chairman. Shares of Sina fell 0.8% to $35.25. Among the leading decliners for Chinese ADRs Monday were solar plays Yingli Green Energy ( YGE), which fell 5.9% to $17.10; LDK Solar ( LDK), which lost 6.8% to $27; Trina Solar ( TSL), which closed down 5.6% to $30.74; and Chinese advertising company Focus Media ( FMCN), which traded off by 5.5% to $35.15. 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.