Telecom stocks wash out gains

Telecom stocks on Wednesday surged as much as four per cent after the government allowed 100 per cent foreign direct investment but the euphoria did not last long as investors booked profits washing out all gains. At the close of trade, telecom stocks ended with as much as 4.3 per cent loss. Shares of Idea Cellular tanked 4.26 per cent to Rs 150.75 on the BSE. Intra-day, the scrip had touched its record high of Rs 163.50. After touching its 52-week high earlier, Reliance Communications fell 2.06 per cent to Rs 142.90. Bharti Airtel, too, was down 1.68 per cent to Rs 315.85, after notching up nearly two per cent rise intra-day. "Telecom shares erased early gains due to profit booking," said CNI Research CMD Kishor Ostwal. Telecom shares, which were in the spotlight for the last couple of days, saw huge profit-booking, said brokerage India Infoline. However, state-run MTNL closed nearly three per cent higher.