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A maturing market amid the mayhem
Telecom stocks plunge
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Telecom stocks were in focus on Tuesday with several of them posting sharp falls, even as the Sensex recovered over 300 points to close nearly 100 points higher.
Market participants are worried that lower tariffs and increasing competition could hurt profitability of such firms. On Monday, Reliance Communications cut call charges across all networks to 50 paise/min.
Shares in Bharti Airtel and Reliance Communications slipped over 10 percent each in trade. Others like Idea Cellular and MTNL ended 8.2 and 5 percent lower respectively.
Bharti Airtel shares have slipped more than 17 percent in the past two trading sessions.
There was heavy trading in these firms, with Bharti, Reliance Comm and Idea Cellular ending among the top six traded counters on the BSE.
Do you think these shares will bounce back soon and help investors book profits?
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Telecom in India has ridden the tech wave, the rural wave, genX wave & more. Its ubiquitous nature is what makes it resilient in adverse business conditions. Given the vast unconnected population (yes still) in the country, its only left to the telecom players’ speed in grabbing the numbers.
The sector should be the bourses’ darling sooner than later.