Bharti Airtel tanks 8 pc on heavy profit booking
Shares of Bharti Airtel on Monday plunged over 8 per cent on the Bombay Stock Exchange, becoming the biggest loser among the Sensex companies amid choppy trading sentiment in the broader market.business Updated: Oct 05, 2009 19:31 IST
Shares of Bharti Airtel on Monday plunged over 8 per cent on the Bombay Stock Exchange, becoming the biggest loser among the Sensex companies amid choppy trading sentiment in the broader market.
Shares of Bharti Airtel had dipped to an intra-day low of Rs 395.70, down 9.11 per cent over previous close on the exchange. It later settled with a loss of 8.05 per cent at Rs 400.30 on the BSE.
On the National Stock Exchange Bharati Airtel fell 8.11 per cent to close at Rs 400.25.
Over 4.60 crore shares changed hands on both the bourses.
The stock, which witnessed a significant surge of 11 per cent after the collapse of talks between the company and South African firm MTN, today witnessed heavy selling as investors resorted to profit booking at higher levels, marketmen said.
Last week, Bharti Airtel called off talks with MTN after South African government rejected the proposed merger structure, which would have created the world's third largest telecom company with a combined revenue of over $20 billion annually and a subscriber base of over 200 million.
"Another failed attempt towards MTN highlights the complexity of cross-border M&A, and also the company’s desire not to do a deal at any cost. Global expansion aspirations will continue – but near-term focus will now largely be on domestic operations, where competition is tough, and the scope of earnings surprises is limited," financial services firm Nomura said in a report.