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Telecom shares dives in flat market


Shares of major telecom players plunged on Thursday, pulling the BSE Technology Index down 2.8 percent.

Bharti Airtel, which has a 3.6 percent weightage on the Sensex, dropped over 6 percent in a market that ended marginally up at 16,843. Trade in the counter stood at 8.1 million shares.INDIA-STOCKS/JUMP

The other stocks that took a hit included Reliance Communications (down 6 percent), Idea (down 2.2 percent) and MTNL which dropped 1.08 percent.

Fear of survival and reduced profits loom for GSM operators as new entrants could spark a price war which in turn could squeeze the margins of top players.

Telecom stocks plunge


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.