Money on the markets
A maturing market amid the mayhem
Shares in Bharti Airtel, India’s leading telecom firm, gained 3 .4 percent on Wednesday and ended as the top Sensex gainer, even as the overall Mumbai market closed weak.
Other players like Reliance Communications and Idea Cellular managed to close in green as well.
Hurt by price war, Bharti Airtel is expected to report flat quarterly profit growth when it announces results on Friday.
Shares in Bharti Airtel have gained 0.6 percent in 2010 but Reliance Communications has added an impressive 8 percent.
Shares of telecom firms rose on Thursday after the RBI allowed telecom firms to access oversees markets to fund their bids for 3G spectrum.
The big names that led the rise were Bharti Airtel (up 3.4 percent to 342.35 rupees), Reliance Communications (up 2.1 percent higher at 185.70 rupees) and IDEA (up 4.1 percent higher at 60.20 rupees)
Bharti Airtel was also the top Sensex loser. Smaller competitor Idea Cellular closed 2.85 percent lower.
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.