5 Emerging-Market ADRs Outperforming Indices

NEW YORK (TheStreet) -- Global indices registered losses last week on unfavorable economic data. Brazil's benchmark Bovespa was the top decliner among emerging markets, shedding 2.6%. China's Shanghai Composite Index followed, easing 1%, while India's Nifty fell 0.8%. The S&P 500 and the Dow Jones dipped 2.2% and 1.6%, respectively, as U.S. jobless claims edged higher than expected.

For the week ended June 8, data compiled by international fund tracking firm EPFR showed that investors, wary of high inflation and global economic growth, pulled out $220 million from emerging-market equity funds. Stocks on the emerging-market indices declined with central banks raising interest rates despite a slowdown in global economic growth.

Brazil's retail sales dropped 0.2% in April from March levels, for the first time in a year. Additionally, consumer prices in Brazil increased 0.47% in May, the slowest pace since Sept. 2010. BRF Brasil Foods ( BRFS) and Gol Linhas Aereas Inteligentes ( GOL) were among the major losers, sinking 11.7% and 10%, respectively.

On the Shanghai Composite Index, China Medical Technologies ( CMED) and SINA ( SINA) were among the major decliners, plunging 23% and 20%, respectively. Meanwhile, Rediff.com India ( REDF) and Sify Technologies ( SIFY) on India's Nifty index were the top losers, relinquishing 20% and 16.4%, respectively.

These five stocks from India and China accumulated gains in the past week despite losses on global indices.

1. Harbin Electric ( HRBN) is a holding company that designs, develops, manufactures, supplies and services a range of electric motors, including linear motors, specialty micro-motors and industrial rotary motors. With four manufacturing facilities in China, it sells its products in the domestic market and a few international markets. The company has three product lines: linear motors (LMs) and integrated systems, specialty micro-motors and industrial rotary motors. The stock jumped 12% in the past one week.

Both the analysts covering the stock rated it a buy. Analysts polled by Bloomberg expect the stock to gain an average 47.5% to $24 in the next 12 months.

Last week, Harbin Electric agreed to purchase four of GE's gas turbines featuring FlexEfficiency technology for use in district heating applications, in a move to further develop China's high-end electric market. Harbin will buy four Frame 9FB gas turbines from GE by the end of 2013 and use them in future projects.

GE's active relationship with Harbin dates back to 2003 when it first provided gas turbines for projects in China. In 2010, the two companies formed a joint venture to develop China's wind power sector.

2. China Information Technology ( CNIT) specializes in geographic information systems (GIS), digital public security and hospital information systems. The company conducts its operations in almost 30 provinces and provincial cities in China. The stock added 2.1% last week.

The single analyst covering the stock rated it a buy. Analysts polled by Bloomberg expect the stock to gain an average 368.8% to $9 in the next 12 months.

Last week, the company accumulated gains as it signed a new contract worth $3.5 million with the Shenzhen Traffic Police Bureau for providing traffic management solutions. The Shenzhen Traffic Bureau has been CNIT's key customer for several years. Meanwhile, new contracts in the first quarter totaled $36 million, with GIS technology accounting for the major portion of the business.

3. HDFC Bank ( HDB), an India-based bank, has its principal business activities in retail banking, wholesale banking and treasury operations. It has two subsidiaries: HDFC Securities Limited (HSL) offering brokerage services through Internet and other channels, and HDB Financial Services Limited (HDBFS), a non-deposit taking non-bank finance company (NBFC). The stock has advanced 1.9% in the past week

Both the analysts covering the stock rated it a buy. Analysts polled by Bloomberg expect the stock to gain an average 19.1% to $195 in the next 12 months.

Last week, TheStreet Ratings upgraded the stock from hold to buy, based on the bank's recent quarter earnings per share growth of 22% and strong gross profit margin of 62.3%. Additionally, the bank revealed last week that it has opened seven branches in the past 10 days in Jammu. Meanwhile, among private banks, the bank has the largest network of 20 branches and 40 ATMs in the state of Jammu and Kashmir.

4. Infosys Technologies ( INFY), a global technology services company, engages in providing end-to-end business solutions and software products for the banking industry and business process management services. During the past week, the stock has improved 0.8%.

Of the 17 analysts covering the stock, 35% rated it a buy and 53% suggested a hold. Analysts polled by Bloomberg expect the stock to gain an average 10.8% to $69.99 over the next 12 months.

Last week, Infosys unveiled that it acquired the software solutions business of Gen-I, as part of a partnership agreement with Telecom Corporation of New Zealand to offer outsourcing services for the company's Australian clients. Infosys Australia and New Zealand, and Gen-I will form part of the partnership. The financial terms of acquisition were not disclosed.

5. Wipro Technologies ( WIT), a global information technology services company, provides outsourced research and development, infrastructure outsourcing, business process outsourcing (BPO) and business consulting services. The company structures its operations into three main segments: IT Services, IT Products, Consumer Care and Lighting. Last week, the stock rose 0.4% higher.

Of the 10 analysts covering the stock, 70% recommend a buy while 10% rate a hold. Analysts polled by Bloomberg expect the stock to gain an average 2.4% to $14.07 in the next 12 months.

Last week, the company unveiled that it has won an engagement with Chaucer Syndicates, a specialist insurer at Lloyd's -- the global leader in the insurance and reinsurance market -- to deliver a data warehouse and associated extract, transform and load (ETL) solution to ensure compliance and better analytics and improved management reporting for Chaucer.

Also last week, Wipro was cited a leader in "The Forrester Wave: SAP Services Providers, Q2 2011 (April 2011)" as it has some of the strongest skills of SAP service Indian providers.

>>To see these stocks in action, visit the 5 Emerging-Market ADRs Outperforming Indices portfolio on Stockpickr.

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