FPJ BUSINESS DESK Mumbai
Shares of new telecom licensee companies were beaten down heavily in the stock market after the Supreme Court cancelled as many as 122 2G licences granted by former telecom minister A Raja, but old players
like Bharti Airtel and Idea Cellular saw smart gains.
Bharti Airtel and Idea Cellular outperformed the broad- based selling pressure witnessed in the some of the telecom- related stocks. Shares of Bharti surged 6.88 % to close at Rs 385.95, becoming the best performer among the 30- Sensex blue chips. In a similar fashion, Idea, too, went up by 2.68 %. Shares of Reliance Communications which had lost 9.31 % during the day, pared most of the losses and settled at Rs 96.85, down 3.54 %. Some sort of recovery was seen during the later part of the day in the earlier- battered stocks as well, as some investors saw buying opportunity at lower levels.
The BSEs sensitive index, comprising a basket of 30 stocks, closed in the green at 17,470.7 points, with a gain of 170.12 points, or 0.98 percent.
Shares of realty firm Unitech, one of the promoters of Uninor, was the worst hit and settled the day 7.04 % down at Rs 25.10 on the BSE, after dropping as much as 14 %. DB Realty, which had lost 8.62 % during the day, trimmed most of the losses and closed the day 0.48 % lower at Rs 62.30.
Videocon ended at Rs 171.95, down 0.92 %. Banks with large exposure to telecos whose licenses were cancelled also ended lower. IDFC lost 4.7%, which has the largest exposure to the sector as a percentage of its total loan book. State Bank of India was down 0.2%. The 122 licences were given by Raja for over Rs 9,000 crore, while 3G auctions for a smaller number of licences had fetched the government a sum of Rs 69,000 crore.