Indian markets trim gains post SC 2G verdict

After the SC announced the cancellation of the 2G licenses, the markets which had been quietly moving upwards, went berserk, trimming earlier gains. The 30-share Sensex of the BSE was at 17,361, up 60 points while the broader based 50-share Nifty was up 7 points at 5,242.

Banking stocks which were feared to have exposure to the 2G companies lost value on the stocks exchange, with SBI, ICICI Bank, HDFC Bank declining. The Bankex lost 1% while SBI fell by 4%, and PNB lost 1.7%.

However gains in the stocks of other largecaps, like Bharti Airtel, Infosys and L&T helped keep the market in positive territory. Videocon Industries and Tata Teleservices fell 2% while Unitech declined by 9% after news that the SC has imposed fines of Rs 5 crore each on Tata and Unitech.

Reliance which opened its buyback program yesterday, is trading slightly up. The buyback would remain open till 19^th of January 2013. Realty stocks have declined, with DB Realty having fallen by 5%. Metal and technology stocks, including those of Sterlite, Hindalco, and Coal India, Infosys, Wipro and TCS have risen.

Conversely those telecom companies who had not been affected by license cancellation, saw their stocks climb post SC verdict. Apart from Bharti Airtel, Idea was up 3.96 percent at Rs.97.05 and MTNL, up 2.66 percent at Rs.30.90.

The Supreme Court said the companies whose licences stand to be cancelled will continue to offer their services for four months during which time the telecom regulator will look into the matter and make recommendations for the fresh auction.

Broader markets were ruling higher as well, with the BSE 500 index trading 0.81 percent up from its previous close. The BSE midcap index was up 0.53 percent while the BSE smallcap index gained 0.58 percent.

The market breadth was positive with 1,466 stocks advancing, 1,152 on the decline and 111 unchanged. Asian markets were ruling in the green.

The Japanese Nikkei gained 0.76 percent and closed at 8,876.82 points, while Hong Kong’s Hang Seng gained 1.66 percent to trade at 20,671.42 points. The Chinese Shanghai Composite index was ruling 1.89 percent higher at 2,310.94 points.

Shortlink:

Posted by NVO1 on February 2, 2012. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry