Stocks in Indian rose sharply on Tuesday, led by banking and realty shares on reports that advanced tax collections for the April-to-June period are up significantly.According to the Economic Times, India's biggest mortgage player, Housing Development Finance, announced that its tax payments jumped 47%, ICICI Bank ( IBN) saw its payments surge 36%, the State Bank of India said payments soared 32%, and HDFC Bank ( HDB) paid 40% more. Short-covering propelled Indian shares higher as analysts perceived the jump in tax collections as a precursor to stronger corporate earnings reports for the upcoming June period. However, some market observers in the region said the fundamentals didn't support strong earnings, and the market moved up on light volume. "This is clearly a relief rally, as the combination of macroeconomic factors -- inflation, price of oil, value of the rupee, high interest rate scenario and possibility of another hike, amid a dip in economic growth is lethal. And even the slightest negative news from markets overseas will aggravate the situation. I see no reason for this rise except the possibility of some manipulation," said Daljeet Kohli, head of research at Emkay Share and Stock Brokers. The Bombay Stock Exchange's Sensex Index soared 301.08 points, or 1.96%, to 15,732.75. Here's a look at how some India-based American depositary shares traded in the U.S. on Tuesday. Tata Communications ( TCL), an Indian communications solutions provider, announced a sharp drop in its fourth-quarter net profit due to slower sales growth. The company said fourth-quarter net profit came in at 103 million rupees ($2.4 million), vs. 154 million from a year ago and total revenues were 85.7 billion rupees, vs. 88.49 billion a year ago. American depositary shares of Tata, which trade on the NYSE, traded up 4.1% to $20.27.
According to the Business Standard, Maruti Suzuki India, the Indian division of Suzuki Motor, is possibly planning to launch a car that will cost less than Tata Motors' ( TTM) ultra-cheap Nano. The newspaper cited a source in the consumer financial industry that said Maruti Suzuki is going to offer a stripped-down version of the Maruti 800 model that will cost 12,000 rupees ($2,789). Shares of Tata Motor rose 1.8% to $12.25. Wirpo Technologies ( WIT - Get Report), an Indian information technology service company, announced that it's buying out its joint venture with U.S.-based mobile phone giant Motorola ( MOT) for an undisclosed amount. The companies formed a joint venture firm, WMNetServ, in 2006 to provide outsourced networked services to wireless companies, equipment vendors and government customers. Shares of Wipro finished essentially flat at $13.41. 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 lost 79.35 points, or 2.8%, to 2,794.75, and Hong Kong's Hang Seng Index added 28.30 points, or 0.12%, to 23,057.99. Here's a look at how some China-based American depositary shares traded in the U.S. on Tuesday. Perfect World ( PWRD), a Chinese online game developer and operator, announced it has entered into a new licensing agreement with Malaysia-based online game operator Cubinet Interactive to license "Chi Bi" in Vietnam, Thailand, Malaysia and Singapore. As part of the licensing agreement, the companies will work together on the localization of the 3D game through launching it in different languages, such as Chinese, English, Vietnamese and Thai. American depositary shares of Perfect World, which trade on the Nasdaq, climbed 1.8% to $26.14. Shares of China's Canadian Solar ( CSIQ), an alternative energy company that is incorporated in Canada and has all its manufacturing facilities in China, soared 10% after the firm raised its 2008 revenue forecast due to strong demand for the company's e-Module products. The company upped its 2008 revenue guidance to $750 million to $870 million, vs. previous estimates of $650 million to $750 million. Shares of Canadian Solar jumped $4.54 to $47 on heavy volume. China-based provider of customized module and subsystem design solutions Cogo Group ( COGO) issued revenue guidance for the second quarter and reaffirmed its full-year 2008 revenue forecast, saying that handset demand has dropped off due to the May earthquake, but the company expects business from other sectors to pick up during the Olympics. The company said second-quarter revenues will be in the range of $67 million to $69 million, vs. Wall Street estimates of $67.3 million, and full-year 2008 revenues will be $290 million, vs. estimates of $289.2 million. Shares of Cogo Group dipped 3.9% to $10.71.
Some big movers among China-based stocks and Chinese ADRs Tuesday were China Precision Steel ( CPSL), which blasted up 9% to $5.20; VisonChina Media ( VISN), which jumped 8.6% to $18.30; Jinpan International ( JST), which soared 5.8% to $35.80; and 51job ( JOBS), which added 4.3% to $19.09. 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.