Idea, RComm gain; new regulations seen as positive

Reuters Market Eye - Telecom shares gain after the new roaming regulations are seen as less stringent than expected and with a negligible financial impact, dealers say.

Idea Cellular is up 1.4 percent, Bharti Airtel gains 0.8 percent, while Reliance Communications rises 3.6 percent.

"More importantly, this development is another indicator of increasing rationality in the sector, both at the regulatory as well as competitive level," said Kotak Institutional equities in a report.

The telecoms regulator on Monday said it would allow carriers to offer free nationwide mobile roaming to subscribers for a fixed fee from July 1, in a partial relief to operators, some of whom had opposed a proposal to completely abolish roaming charges.

(Reporting by Abhishek Vishnoi)