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%)

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.

image
Business Standard
177 22
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%)

Press Trust of India  |  Mumbai 



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.

RECOMMENDED FOR YOU

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%)

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.

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.

image
Business Standard
177 22

LIVE MARKET

BSE

  ( %)

NSE

  ( %)

More News

  • Brokerages remain upbeat on corporate earnings growth Brokerages remain upbeat on corporate earnings growth
  • Majesco surges on strategic tie-up with Elafris Majesco surges on strategic tie-up with Elafris

STOCK WATCH

Company Price() Chg(%)
Sequent Scien. 143.00 17.60
BF Utilities 637.80 9.76
Punj Lloyd 21.75 9.30
Majesco 528.55 9.06
Engineers India 251.85 8.70
> More on BSE Gainers
Company Price() Chg(%)
BF Utilities 638.15 9.86
Punj Lloyd 21.75 9.30
Engineers India 252.05 8.71
Torrent Pharma. 1699.00 7.21
Motil.Oswal.Fin. 507.60 6.82
> More on NSE Gainers
Company Price() Chg(%)
Welspun India 59.30 -9.95
Lycos Internet 10.62 -4.41
Yamini Invest 36.15 -3.60
Idea Cellular 97.85 -2.93
Jai Corp 75.30 -2.84
> More on BSE Gainers
Company Price() Chg(%)
Welspun India 59.50 -9.98
Lanco Infratech 4.40 -3.30
Idea Cellular 97.85 -3.12
Sh.Renuka Sugar 15.90 -3.05
Jai Corp 75.25 -2.97
> More on NSE Gainers
Widgets Magazine
Widgets Magazine
Widgets Magazine

Derivatives

Index
Instrument Type
Expiry Date
Option Type
Strike Price

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard