Indian stocks fell Tuesday, snapping a three-day winning streak, as traders returned to their desks after a long holiday weekend. Inflation concerns were cited as the main culprit for the selling pressure after crude oil hit record high prices and India's inflation rate, measured by the wholesale price index (WPI), hit a new three-and-a-half year high at 7.83% on Friday. Traders said the continued pressure on inflation might force the central bank to hike interest rates just as the Indian economy is losing steam."We saw some profit-booking in the market, but that has been the case after every consecutive rally. There was not much buying in the market as institutions kept selling, fearing that inflation may move further up," said a local dealer. The Bombay Stock Exchange's Sensex Index finished down 204.76 points, or 1.17%, to 17,230.18. Here's a look at how some India-based American depositary shares traded in the U.S. Tuesday. Satyam Computer Services ( SAY), India's leading information technology (IT) company, announced it has inked a deal with GE Healthcare, a division of General Electric ( GE), to support customers using GE Centricity Enterprise software. American depositary shares of Satyam Computer, which trade on the NYSE, fell 1.4% to $25.97. Elsewhere in the Indian IT sector, shares of Infosys Technologies ( INFY) fell 2.6%, despite the bullish comments the company received from Paul Hermelin, the CEO of Europe's largest IT group Capgemini. Hermelin told Reuters that Indian IT firms like Infosys and Tata Consultancy Services can easily move into Europe in search of growth as the U.S. market slows down. "The penetration of Europe the U.S. way can last three to four years," he said. "They frankly can enjoy many, many quarters of high growth in Europe." Shares of Infosys lost $1.19 to $44.32.
India's leading pharmaceutical company Dr. Reddy's Laboratories ( RDY) announced its fourth-quarter profits plunged 68% and total revenue for the year dropped 23%, due to rising expenses, foreign exchange losses and competition from generic drugs in the U.S. The company said net income was $26 million, or 15 cents per American depositary share, vs. $81 million, or 51 cents per ADS, a year earlier, Total revenue came in at $1.25 billion, vs. $1.62 billion from the previous year. Foreign exchange losses jumped to $17.5 million, vs. $3.2 million from a year ago. Shares of Dr. Reddy's fell 2.2% to $14.86. Indian ADRs were weak across the board Tuesday with HDFC Bank ( HDB) falling 4.6% to $104.19; Patni Computer Systems ( PTI) dropping 3.8% to $12.89; and Icici Bank ( IBN) trading down 3.2% to $43.05. 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.
The Shanghai Composite Index plunged 161.60 points, or 4.5%, to 3,443.22, and Hong Kong's Hang Seng Index dropped 572.77 points, or 2.2%, to 25,169.46. Here's how some China-based American depositary shares traded in the U.S. Tuesday. Chinese online game operator The9 Limited ( NCTY) announced its first-quarter net revenue surged 63% year-over-year and net income jumped 36%, due to higher subscriptions for Blizzard Entertainment's World of Warcraft video game. The company said net revenue was $62.67 million, vs. Wall Street estimates of $58.1 million and net income was $12.79 million, vs. $9.4 million for the first quarter of 2007. Following the strong earnings report, Brean Murray, Carret & Co. maintained its buying rating on the shares and raised its price target from $23 to $30. Shares of The9 finished essentially flat at $25.74. Shares of China GrenTech ( GRRF), a manufacturer and marketer of wireless coverage products, plunged 15% Tuesday, despite the fact the company said it narrowed its first-quarter loss on a 128% rise in total revenue. The company said its first-quarter loss was 24 cents a share on revenue of $10.2 million, vs. Wall Street estimates of 25 cents a share and $8.41 million in revenue. Shares of China GrenTech fell 92 cents to $5.23. Shares of Shanghai-based air carrier China Eastern Airlines ( CEA) jumped 1.3% after rumors hit the street that the company plans to merge with rival Shanghai Airlines. China Eastern board secretary Luo Zhuping denied the rumors and said the company is focused on disaster relief efforts after last week's 7.9 magnitude earthquake. Shares of CEA finished essentially flat to $44.47.
China Techfaith ( CNTF), a leading handset design and software solution provider, announced its first-quarter revenue soared 81.8%, due to strong performance from its original developed product (ODP) business. The company said revenue came in at $49.6 million, vs. previous guidance of $48 million to $49 million and net profit was $2.86 million, or 7 cents per American depositary share, vs. a net loss of $3.43 million, or 8 cents a share, a year ago. Looking forward, China Techfaith said second-quarter revenue should be in the range of $52 million to $54 million, vs. Wall Street estimates of $51.95 million. Shares of CNTF plunged 16% to $5.56 on heavy volume. Some noticeable movers to the upside among China-based stocks Tuesday were Ninetowns Internet Technology Group ( NINE), which jumped 9% to $2.65; Uranium Participation ( U), which surged 6.7% to $9.60; Canadian Solar ( CSIQ), which added 4.7% to $45.12; and Fuwei Films ( FFHL), which advanced by 4% to $3.42. 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.