Indian stocks fell for the fourth consecutive trading session Tuesday, after investors lowered their stock exposure ahead of the equity derivative contract expiration set for May 29 and new inflation data due out on Friday. Traders said rumors of a fuel-price hike also weighed on shares in the region."The market is under selling pressure because of the end of settlement on Thursday," said Rajesh Jain, chief executive officer at Pranav Securities. "Banking shares have been hit in particular because of fears that rising inflation will prevent the central bank from cutting interest rates." The Bombay Stock Exchange's Sensex Index lost 72.91 points, or 0.5%, to 16,275.59. Here's a look at how some India-based American depositary shares traded in the U.S. Tuesday. Indian global communications solution company Tata Communications ( TCL) announced it has inked a deal with United Arab Emirates-based Emirates Telecommunications to provide enterprise network services in the UAE, according to a joint filling. Under terms of the deal, both companies plan to provide ethernet services and other connectivity solutions across the UAE, but financial details of the agreement weren't disclosed. American depositary shares of Tata, which trade on the NYSE, closed up 2.9% at $23.70. Sify Technologies ( SIFY), which provides Internet and enterprise services in India, announced the launch of its Roam Connect International service in India. The company said the new service will be powered by U.S.-based enterprise mobility services company iPass ( IPAS) and will allow Sify customers to gain access to high-speed, reliable and secure wireless broadband services at more than 100,000 locations, including airports, hotels, conference centers and retail locations. Shares of Sify finished essentially flat at $4.97.
According to finextra.com, Indian information technology leader Infosys Technologies ( INFY) is close to signing a deal with Spain-based financial group Banco Bilbao Vizcaya Argentaria ( BBV) for the supply of its Finacle core banking technology platform, which includes wealth management applications, mobile banking solutions and a new Islamic banking option. Shares of Infosys climbed 1.9% to $43.94. Among the worst-performing Indian ADRs Tuesday were Icici Bank ( IBN), which dove 4% to $37.74; Rediff.com ( REDF), which dropped 4% to $7.34; Mahanagar Telephone Nigam ( MTE), which moved down 3.2% to $4.71; and Tata Motors ( TTM), which lost 2.3% to $14.83. 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.
Goldman Sachs downgraded shares of China Mobile ( CHL) from neutral to sell, cut its price target and placed the stock on its conviction sell list. Goldman analyst Helen Zhu said in a note to clients, "China Mobile looks to be headed into a uniquely unfavorable regulatory regime." Shares of China Mobile slid 5.4% to $74.05. Shares of Giant Interactive Group ( GA) jumped 5% after the Chinese online gaming company announced it has resumed full and normal operation of all game servers, following observance of a three-day mourning period for the victims of the recent major earthquake that rocked China. The company also reaffirmed its second-quarter revenue guidance of RMB495 million to RMB505 million. Shares of Giant added 66 cents to $13.46. Elsewhere in the Chinese online gaming sector, The9 Limited ( NCTY) surged 6.6% to $24.96; Perfect World ( PWRD) moved up 6.1% to $25.32; Shanda Interactive ( SNDA) added 4.2% to $35.30; and Sohu.com ( SOHU) tacked on 1.3% to $77.72. Merrill Lynch downgraded shares of ATA ( ATAI), a provider of computer-based testing services in China, to sell from buy following a 57% run-up in the stock during the past two weeks. Merrill thinks investors should lock in profits with the stock trading at 26 times its 2009 earnings. Shares of ATA fell sharply by 10% to $15.35. Suntech Power ( STP), a Chinese solar energy company, announced it has purchased a minority stake in Chinese manufacturer of solar wafers Shunda Holdings from private equity firm Actis and Waichun Investment Fund for $98.9 million. Suntech also said it inked a 13-year silicon wafer supply contract with a subsidiary of Shunda. Under the terms of the deal, Suntech will receive specified annual volumes of silicon wafers with a total volume of around 7 gigawatts from 2008 to 2020. Shares of Suntech dropped 1.8% to $46.02. 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.