2G effect: Telecom stocks tumble 3.9%, RCom leads
Telecom stocks bore the brunt of the 2.3% fall in the BSE Sensex, as the 2G scam continued to bother investors.business Updated: Dec 09, 2010 20:54 IST
Telecom stocks bore the brunt of the 2.3% fall in the BSE Sensex, as the 2G scam continued to bother investors.
The stock of all major listed telecom players were down by an average 3.9% on Thursday.
Reliance Communication suffered the most, with a 5.7% fall in its stock price to Rs 123 from its previous close of R130. The stock, which fell for the fifth consecutive session, has been under pressure since the CAG (Comptroller and Auditor General) report named Swan Telecom a mere front of Reliance Telecom for acquiring 2G licences.
"Today all stocks have fallen and this is more due to the overall sentiment in the market than anything else. While Reliance Communication has been falling consistently for some time now, some stock that were holding on to gains too saw a decline today," said Gaurav Dua, research head, Sharekhan Securities.
The performance of these stocks will largely depend on the market sentiment and new developments on the 2G spectrum front, market experts said.