Posts Tagged ‘telecom companies’

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.

😦

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.

😦

“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.

🙂

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.

😦

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.

😦

Stock Markets Reversed Early Losses, Sensex & Metal Stocks..Up :)

India’s benchmark stock index rose the most in a week, reversing earlier losses.

India’s benchmark stock index rose the most in a week, reversing earlier losses.

India’s benchmark stock index rose the most in a week, reversing earlier losses.

Sterlite Industries (India) Ltd. and Hindalco Industries Ltd. led commodity producers higher after metals prices jumped.

Sterlite, the nation’s largest copper producer jumped 3.1 percent after the price of the metal gained and the stock’s rating was lifted at Nomura Holdings Inc.

Hindalco Industries leapt 6.2 percent after aluminum soared.

🙂

The market reversed early losses helped by metal stocks.

Also, gains in Asian and European markets boosted sentiment here.

The Bombay Stock Exchange’s Sensitive Index, or Sensex, added 92.13, or 0.6 percent, the most since Sept. 30, to 16,958.54.

🙂

The gauge had earlier declined as much as 1.5 percent.

The S&P CNX Nifty Index on the National Stock Exchange rose 0.5 percent to 5,027.40.

The BSE 200 Index advanced 0.4 percent to 2,072.31.

🙂

European and Asian stocks gained as higher commodities lifted metal producers, while financial shares advanced after Bank of America Merrill Lynch Global Research recommended European banks.

Europe’s Dow Jones Stoxx 600 Index gained 1.4 percent to 239.19 at 12:26 p.m. in London, while futures on the Standard & Poor’s 500 Index rose 0.8 percent.

The MSCI Asia Pacific Index advanced for the first time in four days today, adding 1.5 percent.

Overseas funds bought a net 13.7 billion rupees ($286.7 million) of Indian stocks on Oct. 1, the Securities and Exchange Board of India said.

The funds have bought 615 billion rupees of Indian stocks this year to date, compared with record net sales of 530 billion rupees for the whole of 2008.

However, Reliance Communications Ltd., India’s second-largest mobile phone operator, led declines by telecom companies on concern lower call charges will cut earnings.

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

Kotak Securities removed Bharti from its list of 10 most recommended stocks following yesterday’s downgrade.

🙂

On Energy front, Oil & Natural Gas Corp., the biggest energy explorer, added 1.3 percent to 1,184.8 rupees after saying its in talks with Iran’s state-owned Petropars Ltd. to buy a stake in South Pars, the country’s largest natural gas field.

🙂