India's Sensex Index broke below the psychologically important 14,000 level during intraday trading on Tuesday as market players in the Far East speculated that the ruling Congress Party will have a difficult time convincing India's main Communist Party, an important alley, to agree on the India-U.S. nuclear accord when the two parties meet on Wednesday.

The Communist Party has threatened to pull its parliamentary support for the ruling party if it continues to support the controversial nuclear deal with the U.S. Analysts in the region said that if the political heavyweights can't come to an agreement, it could force the nation into early elections.

"Investor confidence is at a low, as the market is flooded with all kinds of negative news flow, primarily related to political and macroeconomic front," said VVLN Sastry, chief executive of First Call India Equity Advisors.

The Bombay Stock Exchange's Sensex Index dropped 186.74 points, or 1.3%, to 14,106.74. The Sensex has now lost a total of 10% in the last five trading sessions. 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 it has inked a deal with South African government-controlled Eskom and Transnet to acquire a 30% stake in South African-based fixed-line operator Neotel, bringing its total stake to a majority level. The company didn't release the financial details of the deal, but it said the agreement would give it and Tata Africa a 56% total stake in the South African telecommunications firm. American depositary shares of Tata, which trade on the NYSE, dropped 4.3% to $16.97.

According to the Economic Times, India's largest auto maker, Tata Motors ( TTM), has decided to pay its Nano venders a majority of the cost difference for skyrocketing steel prices. The vendors are also seeking concession for furnace oil, aluminum, other alloys and energy costs. However, not all of the vendors will see immediate economic relief. The cost absorption will be initiated for when certain parts go on stream leaving some vendors out in the cold until the Nano is closer to final production. Shares of Tata Motors slipped 3.2% to $10.99.

Indian mining giant Sterlite Industries ( SLT) plans to sell $2 billion of bonds, according to an unidentified investor source cited by Reuters. The company will issue 5.5-year bonds that yield 8.25% and 10-year bonds that will yield 9%. Some of the proceeds from the sale could be used to fund the $2.6 billion purchase of the operating assets of miner Asarco. Shares of Sterlite moved down 1.4% to $16.84.

The only Indian ADR to close in the green Tuesday was Dr. Reddy's Laboratories ( RDY), which closed higher by 1.5% to $15.53.

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.

China Recap

Stocks in China traded mixed on Tuesday, with shares in mainland China rising on bargain-hunting and stocks in Hong Kong dropping, led by property companies. Traders in the Far East said market players are staying on the sidelines ahead of the U.S. Federal Reserve meeting set for Wednesday.

"People are too cautious and there's not a lot of positive news coming out," said Kenny Tang, associate director at Tung Tai Securities.

The Shanghai Composite Index traded up 42.60 points, or 1.5%, to 2,803.02, and Hong Kong's Hang Seng Index moved down 258.94 points, or 1.1%, to 22,456.02. Here's a look at how some China-based American depositary shares traded in the U.S. on Tuesday.

Chinese producer of crude oil and natural gas PetroChina ( PTR) announced it has inked a letter of intent with Royal Dutch Shell ( RDS.B) and Qatar Petroleum International to assess the feasibility of launching a new refinery and petrochemical complex in China. Under the terms of the agreement, PetroChina will control a 51% stake in any possible venture, while Shell and Qatar Petroleum will control 24.5%. American depositary shares of PetroChina, which trade on the NYSE, fell 1.5% to $131.77.

eFuture Information Technology ( EFUT), a Chinese provider of front-end supply chain management software and services, announced its total revenue for the first-quarter of 2008 soared 92.8% and service revenues for the first-quarter surged 241.6%, the strongest growth of any quarter in ten years The company said its total revenues for the first-quarter were RMB14 million ($2 million), vs. RMB7.3 million for the same period a year ago and service fee income for the first-quarter was RMB5.0 million ($0.7 million). Looking forward, the company said its full-year 2008 revenue guidance will come in between the range of $19 million to $20 million, which represents growth of 65% to 74% from 2007. Shares of eFuture fell 11.5% to $12.73 on above average volume.

Chinese alternative energy company Suntech Power Holdings ( STP) announced it has inked a long-term silicon wafer supply agreement with Wacker Schott Solar GmbH. Under the terms of the deal, Wacker Schott will supply Suntech with specified annual volumes of around 220 megawatts over the duration of the deal. Shares of Suntech moved up 15 cents to $41.42.

Elsewhere in the Chinese alternative energy sector, China Sunergy ( CSUN) announced it will sell $45 million in convertible senior notes to a private buyer. The deal will also grant the initial purchaser an option to buy up to an additional $5 million in aggregate principal amount of the notes to cover overallotments. The company plans to use the capital raised from the sale for expansion of production capacity, enhancement of research and development and general corporate purposes. Shares of China Sunergy dipped 3.4% to $10.66.

China Digital TV ( STV), the leading provider of conditional access systems to mainland China, announced that its wholly owned subsidiary, Beijing Novel-Super Media Investment, has invested RMB30 million to start a joint venture with Guangzhou-based Pearl River Media. The new venture will sell advertising products for digital TV platforms and provide value-added services such as video on demand. China Digital will control 60% of the joint company and Pearl River media will hold 40%. Shares of China Digital TV advanced 1.3% to $15.98.

Some big moves to the upside in Chinese ADRs and China-based stocks on Tuesday were seen in LDK Solar ( LDK), which soared 8.4% to $42.62; Focus Media ( FMCN), which ripped higher by 7.8% to $28.43; Simcere Pharmaceutical Group ( SCR), which jumped 6.1% to $14.65; and Spreadtrum Communications ( SPRD), which traded up 5.2% to $5.

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.
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