Major telecom stocks have come under selling pressure apparently on fears that the high cost of bidding for spectrum may have an impact on their financial performance unless they are able to raise the rates to meet the cost increase.
In fact, while the shares of Idea Cellular, which had emerged as the top bidder in the spectrum auction, slipped into the red after touching a new 52-week high, shares of Reliance Communications touched a new yearly low on the NSE.
Shares of
Idea Cellular Ltd , with bids over ₹30,300 crore for the spectrum to emerge as the largest bidder, hit a new 52-week high of ₹187. But it was not able to hold on to its gains and had shed ₹8.50 to trade at ₹172.05. The counter witnessed a huge surge in trading volume of over 1.05 crore shares shares.
Reliance Communications touched a new yearly low of ₹56.75 before clawing back to ₹57.75, still down by ₹2.35. This stock also recorded a large volume of trading of 46.14 lakh shares. Shares of Tata Teleservices (Maharashtra) were flat at ₹7.80 and the trading volume was about 13.33 lakh shares.