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Bad year for telecom counters

December 31, 2009

TELECOMS INDIA INVESTMENT

Telecom stocks had a bad year with top counters such as Bharti Airtel and Reliance Communication slipping 8 and 23 percent respectively in 2009.

The overall market however gained as much as 80 percent during the year.

The Sensex ended 81 percent higher at 17465 and gained more than 7,000 points, its biggest yearly gain since 1991.

A price war among telecom operators discouraged investors as there were concerns about future profitability of such companies.

MTNL was another telecom stock that ended the year in the negative, slipping nearly 7 percent. Stocks such as Idea Cellular gained 6.7 percent and Tata Tele rose 23 percent.

Do you think telecom shares make an attractive buy in 2010?

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