Stocks in India crashed on Monday to their lowest level of the year on heightened concerns over skyrocketing crude oil prices and fears of uncontrollable inflation. Market observers in the Far East said that traders reacted to the super spike of $10 in crude oil prices and the disappointing U.S. unemployment report that helped take the Dow down 400 points on Friday. The Sensex Index dove past the psychologically important level of 15,000 before rebounding to close slightly above the key mark.Market players are worried that inflation, which is already running at 8%, is spiraling out of control after the government initiated fuel price hikes last week. "Investors are panicky about the overall market scenario as they feel there might be further rise in inflation. It will take some time for the market to adjust to the emerging global economic scenario due to the rise in crude oil prices," said S.P. Tulsian, financial analyst and CEO of Tulsian.com. The Bombay Stock Exchange's Sensex Index plunged 505 points, or 3.2%, to 15,066.10 Here's a look at how some India-based American depositary shares traded in the U.S. on Monday. According to a report from the Economic Times, Indian auto maker Tata Motors ( TTM) has been approached by executives from General Motors ( GM) about the possible sale of its high-end SUV brand Hummer. Tata declined to comment on the report. Tata also announced it has launched two new heavy commercial vehicles that include the Tata LPS 4930 Novus heavy-duty tractor and the Tata LPT 2516 super turbo heavy-duty truck. The company said that the LPT 2516 will have 10% better fuel efficiency than its nearest competitor and that the LPS 4930 will be outfitted with a Cummins ( CMI) 245ph engine and Eaton ( ETN) gear box. Both HCVs will be sold in Jharkhand. American depositary shares of Tata, which trade on the NYSE, fell 2.6% to $12.17.
U.S.-based provider of information technology, consulting and business process outsourcing Cognizant Technology Solutions ( CTSH), which has a large exposure to the Indian market, announced it has acquired all of the assets of Los Angeles-based media and entertainment technology consulting company Strategic Vision Consulting for an undisclosed amount. Shares of Cognizant rose 1.7% to $35.37. Indian information technology and consulting company Satyam Computer ( SAY), announced it has won two top awards at the 2008 IDG Computerworld Honors Program held in Washington. The company said its submissions on the Byrraju Foundation and the Emergency Management and Research Institute, in the not-for-profit and healthcare categories received the 21st Century Achievement, which is the top award at the CHP. Shares of Satyam slipped 1% to $26.71. Luxembourg-based ArcelorMittal ( MT), the globe's largest steel producer, announced it has been granted a permit to mine iron ore in the eastern Indian state of Jharkhand. According to the Ministry of Mines Web site, ArcelorMittal will be allowed to mine on 500 acres of land in Jharkhand. Shares of ArcelorMittal finished up 47 cents to $103.48. The only Indian ADR to advance on Monday was Dr. Reddy's Laboratories ( RDY), which added 0.76% to $15.95. 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.
"We are excited to partner with Apple to be the first operator in Greater China to launch iPhone 3G, a testimony to our market leadership position in spearheading 3G and mobile data development in the region," said Dennis Lui, Hutchison Telecom's CEO. American depositary shares of Hutchison, which trade on the NYSE, finished essentially flat at $20.66. Shanghai-based online game operator The9 Limited ( NCTY) announced that its chief financial officer, Tony Tse, has resigned due to personal reasons, effective July 4, 2008. The company has appointed George Lai as its new chief financial officer, effective July 3, 2008. Lai comes from Deloitte Touche Tohmatsu, where he held positions including audit manager and senior auditor. Shares of The9 finished essentially flat at $25.91. Shares of ATA ( ATAI), a computer-based testing service provider, fell 3.3% after Susquehanna downgraded the stock from positive to neutral citing valuation. The firm said the stock is fully valued considering that shares of ATA have risen 60% since the firm started coverage on April 3 and that the stock has already reached Susquehanna's $14 price target. Shares of ATA dropped 51 cents to $14.69. Roth Capital Partners downgraded shares of Chinese cell phone chip maker Spreadtrum Communications ( SPRD) to hold from buy and lowered its price target from $12 to $9 citing weak macro conditions and a possible threat to the company's business following the Chinese government's reorganization of the country's telecom industry. In a note to clients, Roth analyst Jay Srivatsa lowered his sales estimate for the second quarter from $40.55 million to $39.53 million, and he cut his third-quarter sales estimate from $44.8 million to $41.5 million. Srivatsa also slashed his full-year 2009 revenue forecast to $191 million from $208 million. Shares of Spreadtrum plunged 15% to $7.94.
Chinese alternative energy stocks came under heavy selling pressure Monday after crude oil futures fell $3.63 to $134.91 a barrel on the New York Mercantile Exchange. ReneSola ( SOL) fell 10% to $20.56; Trina Solar ( ZNH) dove 10% to $40.43; Solarfun Power ( SOLF) slipped 9.4% to $19.59; and LDK Solar ( LDK) dropped 6.2% to $39.51. 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.