Posts Tagged ‘market leaders’

Telecom Stocks Continues To Plunge Down :(

Shares of telecom companies continued to decline amid the ongoing tariff war

Shares of telecom companies continued to decline amid the ongoing tariff war

Shares of telecom companies continued to decline amid the ongoing tariff war and the losses of market leaders like Bharti Airtel and Reliance Communications so far this month almost at par.

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Since the tariff war started, Bharti Airtel, which enjoys the largest market share, has declined over 23 per cent, while Anil Ambani led Reliance Communications has tanked nearly 31 per cent on the Bombay Stock Exchange.

Telecom stocks are continuously coming down.

The per second plan would act negatively for these companies and accordingly most of the brokerage houses have downgraded the sector.

Regarding RCom, experts said “the slide in the stock was more to do with the tariff war than the audit report and the fact that the company changed from CDMA to GSM also strained its balance sheet.”

Since October 5, shares of Idea Cellular has plunged 13.32 per cent, while the scrip of  Tata Teleservices Maharashtra was down 3.37 per cent.

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“In the midst of the tariff war, the face of telecom industry is changing, the telecom story is being re-looked by the investor community.

The winner in this case is customers and the losers are the companies.”

SMC Capitals head of equity Jagannadham Thunuguntla said.

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Earlier this month, telecom regulator mooted the plan to ask all the operators to consider per-second pulse as a mandatory tariff option along with their other tariff plans.

Paying tariff based on usage per second instead of the current per minute pulse, would heavily impact the profitability of the telecom operators and on these concerns shares of all major telecom companies slipped into the red.

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As subscriber base numbers are also significantly down both in terms of pan India level and individual company wise, it would also affect the share price of the telecom operators significantly.

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