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