Stocks in India were driven sharply lower Friday lead by IT stocks, after Infosys Technologies reported disappointing guidance. Traders said Indian equities were also hit with sell orders after the government released the Index of Industrial Production (IIP) data, which showed a rise of 3.8% in May vs. a gain of 6.2% in April. Economists had predicted that the IIP would hit 6.5% for May.

“I'm cautious on the markets,” said Mumbai-based Ajay Bodke, who co-manages about $1 billion in Indian equities at IDFC Asset Management. “The macro-economic factors are weighing heavily on the performance of the market.”

The Bombay Stock Exchange's Sensex Index plunged 456.39 points, or 3.28%, to 13,469.85. Here's a look at how some India-based American depositary shares traded in the U.S. on Friday.

Shares of Indian Information technology provider Infosys Technologies (INFY) plunged 13% Friday after the company reported a 24% jump in first-quarter revenues, but issued weak second-quarter guidance. The company said first-quarter revenues were $1.16 billion vs. $928 million for the same quarter a year ago. For the second-quarter, Infosys said earnings would come in between the range of 55 cents to 56 cents vs. Wall Street estimates of 56 cents, and revenues would be $1.22 billion to $1.23 billion vs. estimates of $1.23 billion. The company projected full-year revenues to come in at $4.97 billion to $5.05 billion vs. Wall Street estimates of $5.03 billion, and EPS will be between $2.32 and $2.36 vs. estimates of $2.31.

Following the earnings report, S&P raised its rating on Infosys to buy from hold and reiterated its 12-month price target of $50, citing a compelling valuation at current levels. American depositary shares of Infosys, which trade on the Nasdaq, dropped $5.85 to $38.14.

The bearish outlook out of Infosys took down a number of Indian technology ADRs along with a few U.S.-based IT companies that have a large exposure to the Indian market. Shares of Satyam Computer Services (SAY), dropped 9.1% to $23.07; Syntel (SYNT), fell 7.7% to $31.69; Cognizant Technology Solutions (CTSH), slipped lower by 6.9% to $28.16; Patni Computer (PTI), dove 4.7% to $11.05; and Wipro Limited (WIT), lost 2.8% to $11.03.

Concerns over a possible government bailout for U.S.-based mortgage giants Freddie Mac (FRE) and Fannie Mae (FNM), highlighted in a front page article that appeared in the New York Times, pressured Indian banking ADRs lower Friday. Shares of ICICI Bank (IBN) plunged 7.3% to $26.61 and HDFC Bank (HDB) ended lower by 3.4% to $71.17.

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 traded mixed on Friday with shares in mainland China dropping slightly over concerns of an economic slowdown, and shares in Hong Kong ripping higher after China’s second-largest bank Construction Bank said first-half profits might have soared by over 50% from a year ago. The banks positive comments follow a number of rival banks that also issued bullish guidance in the past weeks.

“The Hong Kong market is poised for a rebound. Overseas markets are stabilizing. We expect the market to fare better before the Olympic Games next month,” said Ben Kwong, chief operating officer at KGI Asia Ltd.

The Shanghai Composite Index closed down 18.82 points, or 0.65%, to 2,856.63 and Hong Kong’s Hang Seng Index traded up 362.77 points, or 1.7%, to 22,184.55. Here's a look at how some China-based American depositary shares traded in the U.S. on Friday.

According to Bloomberg, China’s largest oil company PetroChina (PTR) and Royal Dutch Shell (RDS.A) have started production at a well in the province of Shaanxi, which supplies gas to Beijing, Tianjin, Shandong and Hebei. The well is expected to produce around 1.4 million to 1.5 million cubic meters a day. American depository shares of PetroChina, which trade on the NYSE, closed up 18 cents to $126.86.

Elsewhere in the Chinese oil and gas space, shares of Sinopec Shanghai Petrochemical (SHI), rose 14 cents to $31.49; CNOOC (CEO), dropped 1.9% to $167.47; and China Petroleum & Chemical (SNP), moved down 2.7% to $92.12.

Crude oil prices hit a record high on the New York Mercantile Exchange of $146.90 a barrel; after reports surfaced that Israeli war planes were flying in Iraqi airspace and using U.S. airbases in the region, possibly as test runs for a military strike on Iran’s nuclear sites. The Israeli government denied the reports. The skyrocketing crude oil prices weighed on Chinese ADR airline stocks. Shares of China Southern Airlines (ZNH) ended lower by 4% to $18.31 and China Eastern Airlines (CEA) fell 1% to $29.13.

Harbin Electric (HRBN), a Chinese manufacturer of specialty motors, announced its wholly owned subsidiary Harbin Tech Full Electric has agreed to acquire Weihai Hengda Electric Motor and Wendeng Second Electric Motor Factory for around $54 million in cash. The company said the acquisition will enhance its leading position in the Chinese electric motor industry. Shares of Harbin rose 1.3% $13.59.

Chinese online game developer and operator Perfect World (PWRD) announced that it launched Zhu Xian, a online game based on the popular novel with the same name in Taiwan through Game Flier International, a subsidiary of Soft-Word International on June 30, 2008. Shares of Perfect World shot up 2.5% to $27.28.

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.