Business Standard

Telecom stocks surge up to 5% after 2G auction flop show

RCom soars 4.88%, followed by Idea Cellular (3.15%) and Bharti Airtel (2.95%)

Related News

Defying an overall weak stock market trend, telecom stocks today surged by as much as 5% a day after the much-talked about 2G mobile phone spectrum auction virtually flopped.

settled 2.95% higher at Rs 291 after surging nearly 5% during the day on the BSE. closed the day 3.15% higher at Rs 95.05. Reliance Communications soared 4.88% to Rs 63.45.

"Failure of auction of 2G mobile phone spectrum is a big plus for existing telecom players like Bharti, Idea and RCom," CNI Research CMD Kishor Ostwal said.

The surge in telecom stocks was in sharp contrast with an overall weak stock stock market, where the Sensex ended at 18,471.37, down 147.50 points.

"Low participation in 2G auctions was widely expected given high reserve prices as well as other liabilities, like one-time spectrum fee and spectrum reframing, hanging on telecom companies," Angel Broking said in a report.

The 2G mobile phone spectrum auction saw bids worth just Rs 9,407 crore being garnered as per provisional results revealed yesterday evening.

The government was targetting a minimum of Rs 28,000 crore from the sale of 2G spectrum in the GSM band.

The tepid response may, however, upset its efforts to meet the revised fiscal deficit target of 5.3% of GDP.

Overall, the government had budget Rs 40,000 crore as revenue from spectrum sale this fiscal.

Read more on:   
|
|

Read More

BSE launches carbon index

Premier bourse BSE, in collaboration with the UK government, today launched BSE Carbonex, the first-of-its-kind index in India or any emerging market ...

Quick Links

 

Market News

OnMobile Global gains on improved cash position

OnMobile Global has gained around 9% at Rs 35.70 in early trade on BSE mainly on account of improved cash and cash equivalent position in the ...

Markets open at fresh high; Nifty above 8,200

The 30-share Sensex is up 198 points at 27,544 and the 50-share Nifty has gained 57 points at 8,226.

Markets may open higher on firm global cues and FII buying

FIIs were net buyers on Thursday to the tune of Rs 1,257.49 crore while strong economic data from US has lifted Asia markets

Sensex scales record high; Nifty within kissing distance

Unperturbed by end of US Fed's bond buying, equities post healthy gains

Higher open interest enthuses markets on expiry day

Rollover percentage in the Nifty was lower than three-month average, at 64%

Back to Top