Money on the markets
A maturing market amid the mayhem
Telecom stocks had a bad year with top counters such as Bharti Airtel and Reliance Communication slipping 8 and 23 percent respectively in 2009.
The overall market however gained as much as 80 percent during the year.
The Sensex ended 81 percent higher at 17465 and gained more than 7,000 points, its biggest yearly gain since 1991.
A price war among telecom operators discouraged investors as there were concerns about future profitability of such companies.
MTNL was another telecom stock that ended the year in the negative, slipping nearly 7 percent. Stocks such as Idea Cellular gained 6.7 percent and Tata Tele rose 23 percent.
Telecom gear maker ITI Ltd jumped after the government extended until September 2010 a requirement for state-run telecoms to source 30 percent of equipment orders from it.
Shares in the counter jumped almost 17 percent to a 52-week high of 53.20 rupees before ending 11.2 percent higher at 50.65.
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 shares closed down rupees 34.85 at 400.25 with volumes of over 6 million on the BSE, making it one of the most traded counters.
The company is in exclusive talks for a stake in South Africa’s MTN, a deal which will create the world’s No. 3 mobile firm. On Thursday, the two firms said they were extending talks till Sept. 30, their second such extension this year.