Posts Tagged ‘Bharti Airtel Ltd’

Reliance Comm. Leads the Decline among India Phone Stocks !

Reliance Communications Ltd. turned as a leading declines among India’s telecommunications stocks

Reliance Communications Ltd. turned as a leading declines among India’s telecommunications stocks

Reliance Communications Ltd. fell the most in nine months in Mumbai trading, leading declines among India’s telecommunications stocks, on speculation a price war may hurt earnings after the company cut its call charges.

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Reliance tumbled 11 percent to close at 268.30 rupees, the biggest decline since Jan. 7.

Larger rival Bharti Airtel Ltd. declined 10 percent to 359.35 rupees.

The two stocks were the worst performers today on the benchmark Sensitive Index, which climbed 0.6 percent.

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Sales have been slowing at Reliance and Bharti as competition from Vodafone Group Plc’s Indian unit and new entrants such as NTT DoCoMo Inc. intensifies in the world’s largest wireless market by users after China.

Revenue growth is also easing as wireless subscriptions in urban areas approach saturation level, forcing the companies to target low-spending rural customers for the bulk of their new additions.

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A “price war can impact the revenues of telecom companies by 15 to 20 percent,” said Jagannadham Thunuguntla, head of equities at SMC Capitals Ltd. in New Delhi.

Reliance has said that it will charge a uniform 0.50 rupee (1 U.S. cent) per minute for local and long-distance calls, to simplify tariffs.

The new rates will help the company gain market share for its services based on the global system for mobile communications platform.

“The cut in tariffs by Reliance will distort the revenue structure for companies in the sector,” market experts said.

“It could prompt other companies to follow with cuts” they added.

🙂

Market continues its thrust on 10/6/2009:)

Market continues its thrust

Market continues its thrust

After a spectacular opening, the key benchmark indices extended gains on sustained buying by foreign funds.

Foreign funds bought shares worth Rs. 955.31 crore on Tuesday 9 June 2009.

Indian stocks roared on expectations that ample liquidity in pipeline and a return of risk appetite will nudge India Inc corporate profits. India Inc has already raised almost Rs. 5,000 crore from three qualified institutional placements (QIPs) so far in 2009 and announced plans to raise another Rs 20,000 crore.

On the sectoral front, out of 13 Indices, all were traded in green.

Oil stocks advanced as crude oil surged towards $71 a barrel for the first time in seven months on a larger-than-expected fall in crude oil stocks and a view that falling oil demand may have bottomed.

IT stocks fell on stronger rupee.

Banking stocks gained on reports the Reserve Bank of India may standardize the way banks calculate their prime lending rates (RLRs) and bar them from lending below their respective PLRs for more transparency.

Metal stocks gained as six metals traded on the London Stock Exchange jumped 3.8% overnight.

The Market breadth, indicating the overall strength of the market, was strong.

On BSE, out of 2,717 stocks traded so far, 1,411 shares advanced while 1,241 shares declined. Nearly 65 shares are unchanged.

Major gainers from the BSE Sensex pack are

Wipro Ltd 5.96% to Rs. 449.00, along with,

Tata Power Ltd spurted 5.70% to Rs. 1,205.35,

HDFC Bank Ltd spurted 5.66% to Rs. 1,495.50,

Larsen & Toubro 4.97%% to Rs. 1,652.00,

Reliance Infrastructure Ltd by 4.76% to Rs. 1,204.00,

Sterlite Industries Ltd by 4.61% to Rs. 684.00,

ONGC Ltd by 4.30% to Rs. 1,180.00,

Hindustan Uniliver Ltd rose 3.74% to Rs. 266.00 and

Bharti Airtel Ltd 3.17% to Rs. 838.55 among others.

Losers from the BSE Sensex Pack are

DLF Ltd plunged 0.98% to Rs. 398.75 along with

Tata Motors Ltd fell 0.68% to Rs. 366.00,

State Bank of India 0.41% to Rs. 1,756..00 and

Sun Pharmaceuticals Ltd by 0.36% to Rs. 1,331.00 among others.