Reliance Communications under bear attack, stock down 21% in two weeks

Worries resurface about financial health after a string of credit downgrades

Reliance Communication (RCom), part of the Anil Ambani group, is under renewed pressure on Dalal Street over its financial health. RCom’s market cap declined by 48 per cent from Rs 12,444.9 crore at the end of March 2016 to Rs 6,458.9 crore on May 25, 2017. 

The stock is down 21 per cent in two weeks on the BSE exchange, after credit downgrades by domestic rating agencies. In the period, the Bharti Airtel stock price was flat (up one per cent), while Idea Cellular was down 13 per cent; the benchmark Sensex was up 1.7 per cent.

Early this week,