Idea Cellular, Bharti Airtel extend fall on brokerage downgrade
Idea Cellular has tanked nearly 12%, while Bharti Airtel down 7% in past two trading sessions on the BSE.
 "Idea Cellular, Bharti Airtel extend fall on brokerage downgrade")
Shares telecom companies, mainly Idea Cellular and Bharti Airtel, are trading lower by up to 5%, extending their previous day’s fall, on reports that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt profitability of telecom companies.
Also Read: Bearish bets weigh on telecom shares
Idea Cellular has tanked 5% to 148, after falling over 6% on Thursday. The stock of the country’s third-largest telecom operator has plunged 12% so far in past two trading sessions. Bharti Airtel too, down 2% at Rs 310, has extended its previous day’s fall of nearly 5% on the BSE.
Analysts at Credit Suisse downgraded its rating on the telecom sector to ‘underweight’, while cutting its 2014-15 earnings estimates for Bharti Airtel by 22% and for Idea Cellular by 27%, the Business Standard report suggests.
Analysts said Reliance Jio’s surprise entry has raised worries about the possibility of higher bidding prices at the auction. Reliance Jio, a unit of Reliance Industries (RIL) and seven other companies will bid for 2G spectrum starting February 3.
Also Read: Bearish bets weigh on telecom shares
Idea Cellular has tanked 5% to 148, after falling over 6% on Thursday. The stock of the country’s third-largest telecom operator has plunged 12% so far in past two trading sessions. Bharti Airtel too, down 2% at Rs 310, has extended its previous day’s fall of nearly 5% on the BSE.
Analysts at Credit Suisse downgraded its rating on the telecom sector to ‘underweight’, while cutting its 2014-15 earnings estimates for Bharti Airtel by 22% and for Idea Cellular by 27%, the Business Standard report suggests.
Analysts said Reliance Jio’s surprise entry has raised worries about the possibility of higher bidding prices at the auction. Reliance Jio, a unit of Reliance Industries (RIL) and seven other companies will bid for 2G spectrum starting February 3.