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Telecom stocks struggle, Bharti falls nearly 4.5 pct

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Telecom stocks started the week on a disappointing note, with Bharti Airtel slipping 4.4 percent and Reliance Comm ending down over 1 percent.

Bharti Airtel was also the top Sensex loser. Smaller competitor Idea Cellular closed 2.85 percent lower.

The telecom sector has gone out of favour with investors after firms slashed call tariffs, raising concerns about their profitability.

Bharti Airtel’s shares have dropped as much as 34 percent since October, while rival Reliance Communication has lost 44 percent over the same period.

Bharti Airtel struggles in trade

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INDIA-BHARTI/AIRTELShares in Bharti Airtel, India’s top mobile operator, dropped over 4 percent on Tuesday as a bleak outlook for the sector hit telecom shares.

Losses in Bharti, the top Sensex loser, also weighed on the Sensex which closed down around 60 points.

Telecom stocks plunge

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MTN-BHARTI/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.

Market rises on short covering

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INDIA-BUDGETThe good times continue for the market. The benchmark extended its rally on Thursday and ended 186 points up as investors covered short positions on the last date of derivatives expiry.

Engineering firm L&T beat forecast with strong quarterly numbers. Its shares closed 2.3 percent up.

Sensex gains 26 points, Bharti falls

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INDIA-BUDGETThe Sensex seesawed through the day to end marginally higher at 13,913 points, after a historic last week when it had surged over 14 percent.

Bharti Airtel was in the limelight after it announced the restart of merger talks with South Africa’s MTN. The news saw Bharti’s shares closing 5.4 percent down on fears that its earnings would initially be diluted after the deal. The counter had risen by over 8 percent earlier in the day.

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