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Reliance Communications gains in choppy market

Shares in Reliance Communications, India’s number 2 mobile operator, ended 5.3 percent higher at 290.70 rupees after the company said it had repaid early more than $1 billion of loans.

Reliance Comm shares had risen nearly 5 percent yesterday with a traded volume of nearly 4.2 million shares. It remained one of the top traded stocks today. This year the stock has surged nearly 28 percent.

Investor sentiment cemented as the No 2 mobile operator said it had repaid early more than $1 billion of loans and could repay more debt ahead of schedule.

The prepayment of loan would definitely have a positive impact on the profitability of the company as it would reduce the interest component of the outflow by as much as 7.5 billion rupees ($153 million) per year.