Stocks in India mounting a small recovery on Wednesday despite a decision by the Reserve Bank of India to hike the repo rate by 50 basis points to 8.5% and also raise the cash-reserve ratio by 50 basis points to 8.75%. Traders said the bounce seen in the market was mainly due to short covering.

"If inflation indicators don't start to come down in the next two or three months, the RBI has more tricks up its sleeve,'' said Jyoti Narasimhan, research director for India at Global Insight. "This is more of a first step than a last step."

The Bombay Stock Exchange's Sensex Index closed up 113.49 points, or 0.80%, to 14,220.07. Here's a look at how some India-based American depositary shares traded in the U.S. on Wednesday.

Rediff.com ( REDF) India's leading online portal, announced it has made an investment in India-based startup company Varkow.com. Varkow.com is an SMS content sharing social network that allows users to post their SMS messages on its website and share them with their friends on mobile devices, email and on other social networking sites for free. Financial details of the investment weren't disclosed. American depositary shares of Rediff.com, which trade on the Nasdaq, rose 2.4% to $6.75.

An analyst at Indian-based brokerage firm Motilal Oswal said there is a possibility that Indian information technology giant Infosys Technologies ( INFY - Get Report) could lose a big contract with Zurich-based financial service giant UBS AG ( UBS), if rumors of a $80 billion takeover offer from London-based banking and financial services company HSBC Holdings PLC ( HBC) come to fruition. The analyst said that HSBC could use its own IT vendor and that could mean UBS's IT account would transfer to HSBC's vendor. The current account that Infosys holds with UBS is valued around $100 million to $150 million. Shares of Infosys moved higher by 1% to $44.32.

Elsewhere in the Indian technology complex, Syntel ( SYNT), surged 5.3% to $36.23; Sify Technologies ( SIFY - Get Report), added 2.9% to $3.88; Wipro ( WIT), tacked on 2.2% to $12.65; and WNS Holdings ( WNS), finished higher by 1.6% to $17.45.

ICICI Bank ( IBN), India's largest private sector bank, announced it would not raise interest rates despite the pressure to do so following the Reserve Bank of India's (RBI) decision to hike the repo rate by 50 basis points. "We have not taken any decision. We would continue to look at it on daily basis. Our liquidity situation is comfortable. Therefore, we would not take steps in panic," said ICICI Bank's Joint Managing Director, Chanda Kochhar. Shares of ICICI Bank traded up 2.5% to $32.67. 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

Chinese stocks rose in both mainland China and Hong Kong Wednesday as bargain hunters snapped-up oversold stocks on both the Shanghai Index and Hang Seng Index following the heavy selling by large traders that had swept across the entire Far East. Trading was limited on the Hang Seng exchange due to a tropical storm Fengshen. Traders said the rebound in Chinese stocks was technical-based and investors will now look for follow through buying before declaring a permanent recovery.

"Sentiment is a little bit better in China and in Hong Kong today," said Jackson Wong, investment manager at Tanrich Securities. "There's some portfolio rebalancing, with investors buying into stocks that are resilient to inflation and recession such as telecoms."

The Shanghai Composite Index rose 102 points, or 3.64%, to 2,905.01 and Hong Kong's Hang Seng Index traded up 179.14 points, or 0.8%, to 22,635.16. Here's a look at how some China-based American depositary shares traded in the U.S. on Wednesday.

In a note to clients, Pacific Crest analyst Steve Weinstein advised clients to buy Baidu.com ( BIDU - Get Report), China's leading Internet search engine, ahead of its second-quarter earnings report. Weinstein said second-quarter revenues are likely to be above the high end of the company's previous guidance of $111 million to $114 million, and his own estimate of $114.5 million. Weinstein said he anticipates raising his 2008 revenue forecast after the company announces second-quarter earnings, and he thinks Baidu will show 100% revenue growth this year and next year. American depositary shares of Baidu, which trade on the Nasdaq, soared 8.2% to $332.09 on above average daily volume.

According to redlinechina.com, Chinese online gaming operator Giant Interactive ( GA), has made a large investment in 51.com, a popular Chinese social networking site. Shares of Giant Interactive finished essentially flat $12.77.

AirMedia Group ( AMCN), a Chinese digital media network operator, announced it expects total revenues for the second-quarter of 2008 to come in between the range of $29 million to $30 million, vs. previous guidance of $26 million to $28 million, due to strong demand for all of the company's product lines, especially the digital frame business. Shares of AirMedia Group jumped 9.1% to $14.70 on twice the average daily volume.

China-based economy hotel chain Home Inns & Hotels Management ( HMIN) said any shortfalls in revenue from the earthquake that affected western China will most likely be offset by a pickup in business from the upcoming Beijing Olympic Games and the acceleration of hotel chain expansion. The company reiterated its second-quarter guidance of $62.8 million to $65.7 million vs. Wall Street estimates of $62.8 million. Home Inns said the earthquake will reduce its revenue per available room (RevPar) for the second-quarter by 2% to 4%. Shares of Home Inns & Hotels soared 10% to $20.12 on above average volume.

Shares of Chinese diversified media company Xinhua Finance Media soared 20% on twice the average daily volume, after the company announced it has hired Mr. Richard Young, a former executive at ESPN Start Sports in Singapore, to help the company expand its sports content focused broadcast assets. Mr. Young will hold the position of Managing Director of the Xinhua Sports Division. Shares of Xinhua added 46 cents to $2.66.

Some large moves higher for Chinese ADRs and China-based stocks Wednesday were seen in WuXi PhrmaTech ( WX), which jumped 14.5% to $20.43; VisonChina Media ( VISN), which surged 9.8% to $18.13; and Qiao Xing Universal Telephone , which moved up 6.3% to $4.99.

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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