A recovery was seen in telecom stocks that had plunged after the Supreme Court cancelled all 122 licences given by former Telecom Minister A Raja in 2008.
Stocks of Unitech traded with over 5.5 per cent losses at 1440 hours. All 22 licenses of Uninor, the company in which Unitech and Telenor are partners, have been scrapped. Unitech stocks had plunged over 8 per cent after the verdict.
Reliance Communications (down 3.5 per cent) continued to be under pressure though the company issued a clarification after the verdict. "RCom's licences were all issued in 2001 or prior. RCom's licences are not affected by the Supreme Court judgement pronounced today," the company said in a statement.
The promoters of DB Realty partnered with Etisalat to roll out telecom services. 13 licenses awarded to Swan, the company floated by promoters of DB Realty have been scrapped.
Stocks of DB Realty traded flat after falling over 5 per cent. The recovery came after the company issued a statement saying, "This judgment on the cancellation of the 122 licenses will have no bearing or impact on the financials of DB Realty. This matter is for Etisalat DB to comment, as it is not related to DB Realty."
Videocon also recovered from the day's low and traded over 1 per cent lower. 21 licenses of the company stand cancelled.
Among the gainers, Bharti traded with nearly 7 per cent gains. Except Bharti, almost all other telecom stocks have been granted licences post 2008.
Idea also bounced back from the day's low and traded with over 2.5 per cent gains. Though, nine licenses of the company have been scrapped, analysts said these are in loss making circles and will not affect the company's bottom line.
"This is a huge blow to the telecom industry...it's a huge shakeout. At least 11 corporate conglomerates will be badly hit. For the customers there is a four month window," Paranjoy Guha Thakurta told NDTV Profit.
List of 122 licences cancelled by the Supreme Court:
Uninor : 22
Loop : 21 (All India circles except Mumbai)
Sistema Shyam : 21 (All India circles except Rajasthan)
Tata : 3 (Assam, NE, J&K)
Etisalat DB : 15
STEL : 6 (Assam, NE, Bihar, Orissa, Himachal Pradesh, J&K)
Videocon : 21 (All license except Punjab)
Idea : 9
Spice (Idea) : 4 (Andhra Pradesh, Delhi,Haryana, Maharashtra)
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