Indian ADRs jumped in afternoon trading Tuesday after the South Asian country's government said it was considering extending a tax holiday for the booming software sector until 2010.
The Bank of New York India ADR index jumped 17.66 points to 1,040.68. ADR stands for American Depositary Receipt, which is a security designed to allow U.S. investors to trade shares of companies based overseas.
Federal leaders in India proposed Tuesday to lengthen the tax holiday for software companies by another year to March 2010. The move was seen by many as a big positive, as it would allow the sector to maximize profit by saving on taxes.
Also Tuesday, India's central bank left its short-term lending rate unchanged at 7.75 percent.
The move was a boon to stocks on India's leading exchange. The Bombay Stock Exchange's benchmark Sensex rose 363 points, or 2.1 percent, to 17,379 points.
In New York, shares of Satyam Computer Services Ltd. rose $1.32, or 5.4 percent, to $25.67. The company provides information technology and outsourcing services.
Shares of Infosys Technologies Ltd., also an information technology consultant, jumped $1.56, or 3.7 percent, to $43.85.
Wipro Ltd. shares added 31 cents, or 2.4 percent, to $13.
Shares of copper producer Sterlite Industries India Ltd. increased 25 cents to $21.85.
Shares of telecommunications services provider Mahanagar Telephone Nigam Ltd. fell 13 cents, or 2.3 percent, to $5.52.
Despite Tuesday's jump, the India ADR index is still down more than 14 percent for the year, due in part to global economic worries.
The Bank of New York Emerging Markets ADR Index _ which includes shares of companies based in India, China, Brazil and more _ lost 5.24 points to 362.71.
The Bank of New York Composite ADR Index fell 1.13 points to 180.66 as the U.S. markets slid in afternoon trading.
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