Indian equity markets nosedived Tuesday hitting their lowest level since April of 2007, after Fitch Ratings downgraded the country’s debt and local currency outlook from stable to negative. Fitch also said India’s economic growth will slow to 7.7% for 2008 to 2009, vs. 9% for the last fiscal reporting period. The rating agency said inflation was the main culprit for their lower economic forecast.

“A multitude of negative factors pulled down the market, the Fitch downgrade being the biggest. But one must remember that in a bad market such news gets exaggerated, and India is not the only country dealing with inflation and slowing economic growth simultaneously,” said Ajay Parmar, head of research at Emkay Global Financial Services.

The Bombay Stock Exchange's Sensex Index crashed 654.32 points, or 4.91%, to 12,676.19. Here's a look at how some India-based American depositary shares traded in the U.S. on Tuesday.

Indian banking giants ICICI Bank (IBN) and HDFC Bank (HDB) dropped sharply Tuesday following the Fitch report. Foreign institutional investors (FIIS) sold off the Indian banking sector as concerns over future rate hikes from the Reserve Bank of India (RBI) mounted, coupled with fears of a prolonged global credit crisis. American depositary shares of ICICI Bank, which trade on the NYSE, slipped 6.5% to $24.58 and ADR shares of HDFC Bank, fell 4.2% to $66.32.

Credit Suisse maintained their outperform rating on India’s second largest IT provider Infosys Technologies (INFY) but lowered its price target from RS2150 to RS2050. In a note to clients, the firm said Infosys did not raise its revenue guidance for the full year for the first time in five years due to pricing pressure, a weak macro environment in June and the lengthening of sales cycles.

According to NDTV, Infosys might be at risk of losing business from British Telecom (BT) and AT&T (T) due to high costs. Sources close to the situation said AT&T is likely to take away $25 million worth of business from Infosys on a yearly basis. Shares of Infosys dropped 13 cents to $37.02.

India’s largest automaker Tata Motors (TTM) said it has been granted shareholder approval to raise $1 billion through debt or equity from overseas markets. The company also received shareholder approval to raise its borrowing limit to around $5 billion dollars. Shares of Tata Motors finished essentially flat at $9.31.

Some of the few Indian ADRs to trade higher Tuesday were Patni Computer Systems (PTI), which added 3.3% to $11.11; Tata Communications (TCL), which rose 1.5% to $17.56; and WNS Holdings (RDY), which closed up 9 cents $16.75.

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 plunged Tuesday in both Hong Kong and mainland China over fears the government will keep its strict lending restrictions in place as the world’s fastest growing emerging market fights to tame inflation. Far East traders said that Chinese equity markets are waiting on “pins and needles” ahead of key June inflation data due out on Thursday. Analysts expect the consumer price index growth to fall to 7.1% in June vs. 7.7% in May.

“We have to bear in mind the big trend is still heading downwards,” said Linus Yip, a strategist at First Shanghai Securities. “The fundamentals are getting worse.”

The Shanghai Composite Index dropped 98.81 points, or 3.43%, to 2,779.45 and Hong Kong’s Hang Seng Index plunged 839.69 points, or 3.81%, to 21,174.77. Here's a look at how some China-based American depositary shares traded in the U.S. on Tuesday.

Shares of China’s leading electricity provider Huaneng Power International (HNP) fell 5.8% after the company announced it expects to lose money for the first half of 2008 due to skyrocketing coal prices used in power generation. The company said it earned a net profit of 2.94 billion yuan ($431 million) for the first six months of 2007,\ but the first half results for 2008 will come in at a loss based on audited preliminary numbers. American depository shares of Huaneng, which trade on the NYSE, moved down 5.8% to $25.51.

Chinese alternative energy company Canadian Solar (CSIQ) announced it has filed a shelf registration statement with the Securities and Exchange Commission (SEC) to sell 3.5 million new common shares in the U.S. in a public offering. The company said it plans to use the capital raised for general corporate purposes and potential future acquisitions.

Canadian Solar also announced a 9 megawatts sales agreement for its e-Modules with Conergy USA. Under the terms of the contract, Canadian Solar will deliver its e-Modules for 12 months until June 2009 and will start this month. Shares of Canadian Solar fell 9.2% to $34.84.

Elsewhere in the Chinese alternative energy complex, LDK Solar (LDK) surged 4.1% to $37.83; China Sunergy (CSUN), added 1.2% to $7.60; Solarfun Power (SOLF) fell 1.4% to $14.65; and Trina Solar (TSL), slid 2.3% to $29.60.

CDC Corporation (CHINA), a Chinese provider of enterprise software, online games, an Internet and media services, shares soared 16% higher Tuesday after the company said it expects second-quarter revenues to come in ahead of analysts’ estimates, due in part to higher licensing revenue. The company said it expects revenues to come in between the range of $107.3 million to $108.5 million vs. Wall Street estimates of $101.7 million. CDC expects second-quarter earnings and net income to come in higher than its first-quarter due to cost cutting measures. Shares of CDC jumped 37 cents to $2.65 on heavy volume.

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.