Telecom recovers, Bharti, Idea gains

Stocks

oi-Sneha

By Sneha B K

Published: Thursday, February 2, 2012, 14:32 [IST]

Supreme court on Thursday canceled 122 2G license granted by Raja, former telecom minister and imposed fine of Rs 5 crore on Tata Teleservices, Unitech and DB Realty. The judgment was pronounced by justice G S Singhvi and A K Ganguly.

Court has asked the regulator Telecom Regulatory Authority of India (TRAI) to take fresh recommendation on allocation of 2G licenses.

The companies included in cancellation of the licenses are Uninor (joint venture between Unitech and Telenor of Norway), Loop Telecom, SistemaShyam (joint venture between Shyam and Sistema of Russia), Etisalat DB (joint venture between Swan and Etisalat ofUAE), S Tel, Videocon, Tatas and Idea, reports PTI.

A recovery can be seen in telecom sector, However shares of the Unitech were trading low by 5%, 22 licenses of the company were trashed.

Reliance Communication shares were also trading lower by 3% even after the clarification by the company, the company stated that "RCom's licences were all issued in 2001 or prior. RCom's licences are not affected by the Supreme Court judgement pronounced today,"

DB realty recovered after the company came with the 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."

Bharti was trading higher by 7.75T at Rs 389.10. It touched intra day low of Rs 358.30. Idea rekindled and was trading in green up by 3%. It had touched intra-day low of 88.85.

The court has also asked the trial court to decide whether Central Bureau of Investigation (CBI) could investigate the role of Home Minister, P. Chidambaram in the multi-crore scam.

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