Skip to comments.Sell-off, Telecom Meltdown Continue (Indian Stock Market)
Posted on 11/03/2009 7:06:05 PM PST by blam
Sell-off, Telecom Meltdown Continue
By Akash Joshi
The stock market saw the steepest fall after August on Tuesday as benchmark indices fell for the sixth straight trading session on huge sell-off in heavyweight stocks and weak cues from global markets.
The pressure on telecom stocks continued as Reliance Communications (RCOM.NS : 165.8 0) fell 5.7% to close at Rs 165.8, in it seventh straight day of losses.
Though its rival Bharti Airtel (BHARTIARTL.BO : 299.95 0) closed on the positive zone, the pressure on telecom stocks persisted.
In the current year, RComm slid by 27% and Bharti by 16% when the benchmark Sensex (^BSESN : 15404.94 0) jumped 64%.
Analysts like Arup Misra of Elara Captial said RComm could face more selling pressure if the first 3G auction is held only for the GSM players, which the company is not.
This will delay its entry into the new field. The company on Saturday announced that its net profit slipped 52% in the September quarter.
Credit Suisse Group AG has slashed its estimate for the stock by a further 17%, opening up the possibility that the earnings for the entire telecom sector is up for re-rating on concerns over their low-tariff revenue plans.
(Excerpt) Read more at in.biz.yahoo.com ...
Guess that’s why the Indian government bought all that gold yesterday.