Stocks in India soared for the second day in a row Friday, as short sellers raced to cover positions, after crude oil prices continued to slide lower and inflation data came in lighter-than-expected. The government released data on Thursday night that showed the annual rate of inflation for the week ending on July 5 was 11.91%, vs. 11.89% from the week earlier. The market cheered the results considering that many analysts were expecting an inflation reading of 12%.

“Oil prices have come down and inflation figures were on expected lines. So far companies have announced good quarterly results. Many market participants have discounted outcome of vote of confidence and feel that the government will be able to scrape through. These all factors led to rally in the market,” said Rahul Sanghvi, institutional sales, Kantilal Chhaganlal Securities.

The Bombay Stock Exchange's Sensex Index rose 523.55 points, or 4%, to 13,635.40. Here's a look at how some India-based American depositary shares traded in the U.S. on Friday.

Shares of Indian information technology solutions provider Satyam Computer Services (SAY) fell 6% Friday after the company posted a 45% jump in first-quarter profits on higher revenues but offered cautious guidance due to the weakening demand from western clients. The company said its net profit for the first-quarter was 5.48 billion rupees vs. 3.78 billion rupees a year ago and total income surged to 25.57 billion rupees vs. 18.21 billion rupees from last year. Looking forward, Satyam said second-quarter revenues are expected to fall into the range of $645.6 million to $651.9 million vs. Wall Street estimates of $661.3 million and fiscal 2009 revenues should come in at $2.65 billion to $2.69 billion vs. street estimates of $2.72 billion. American depositary shares of Satyam Computer, which trade on the Nasdaq, lost $1.42 to $22.04.

Wipro Limited (WIT) an Indian information technology services company, announced a 15% rise in first-quarter profits that missed analyst estimates due to weak demand from global clients. The company said net profits were 8.14 billion rupees ($190 million) vs. 7.10 billion rupees. Wall Street had been looking for net profits of 9.02 billion rupees. Revenues for the quarter soared 43% to 59.62 billion and the company said it added 31 new clients. Looking forward, Wipro said IT services revenue for the second-quarter would rise 2% to $1.09 billion. Shares of Wipro slipped 2.7% to $10.81.

Elsewhere in the Indian information technology sector shares of Patni Computer Systems (PTI), slid 6.6% to $10.81; Infosys (INFY), dropped 3.3% to $38.42; Syntel (SYNT), fell 2.8% to $32.74; and Cognizant Technology Solutions (CTSH), moved down 2% to $28.09.

Goldman Sachs Group upgraded shares of Indian pharmaceutical company Dr. Reddy’s Laboratories (RDY) from neutral to buy and added the stock to its Asia Pacific buy list. Shares of Dr. Reddy’s shot up 1.2% to $15.90.

Among the leading advancers for Indian ADRs Friday were ICICI Bank (IBN) which rose 3.3% to $30; Tata Communications (TCL), which closed up 2.7% to $19.32; and HDFC Bank (HDB), which popped 1.9% to $77.

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

Shares in mainland China rose sharply Friday spurred by rumors the government will introduce bullish stock market initiatives over the weekend as the August Beijing Olympic Games near. Stocks in Hong Kong also advanced following an extremely volatile trading session. Far East traders attributed the wild volatility to news of disappointing U.S.-based technology earnings from Google (GOOG) and Microsoft (MSFT), coupled with the mainland rumors.

“What happened here was mostly due to other markets,” said YK Chan, fund manager at Phillip Capital Management in Hong Kong. “Some people are buying on bargain hunting, but the region is still quite cautious.”

The Shanghai Composite Index closed up 93.59 points, or 3.49%, to 2,778.37 and Hong Kong’s Hang Seng Index advanced 139.47 points, or 0.6%, to 21,874.19. Here's a look at how some China-based American depositary shares traded in the U.S. on Friday.

Jefferies & Company started coverage on Chinese solar company Solarfun Power Holdings (SOLF) with a buy rating and an $18 price target. The firm thinks a one-third stake purchase by Good Energies combined with some changes to top management could boost operational momentum. American depositary shares of Solarfun Power, which trade on the Nasdaq, dropped 1% to $14.69.

Gabelli & Company started coverage on Chinese alternative energy company LDK Solar (LDK) with a buy rating and a price target of $40 for 2009 and $68 for 2010. The firm said, “With its competitive cost structure, margin expansion opportunities, scalability, and internal polysilicon plants, LDK Solar is well positioned to be the largest global wafer solar manufacturer.” Shares of LDK Solar lost 14 cents to $35.32.

Piper Jaffray started coverage on WuXi PharmaTech (WX), a Chinese pharmaceutical, biotechnology and medical device R&D outsourcing company, with a neutral rating and a $22 price target. The firm said in the near-term gross margins could come under pressure due to sub-optimal facility utilization, non-cash amortization charges and unfavorable Fx. However, Piper is bullish for the long-term due to the company’s solid fundamentals and the strong growth potential of the emerging China CRO industry. Shares of WuXi PharmaTech fell 1.9% to $21.82.

Piper Jaffray also started coverage on 3SBio (SSRX), a Chinese integrated biotechnology company, with a buy rating and a $12 price target. The firm believes that 3SBio is well positioned to capitalize in the pharmaceutical market in China through organic growth and potential acquisitions. Shares of 3SBio jumped 1.5% to $9.74.

Leading the charge higher among Chinese ADRs and China-based stocks Friday were Spreadtrum Communications (SPRD), which soared 23% to $5.81; Xinyuan Real Estate (XIN), which jumped 9% to $6.16; Mindray Medical International (MR), which shot up 7% to $39.36; and Melco Crown Entertainment (MPEL), which finished higher by 6% to $6.65.

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.