Bharti Airtel, Idea shares plunge up to 7% in reaction to RIL's JioPhone launch
RIL, at its 40th annual general meeting on Friday, announced the launch of JioPhone, which will be available for beta testing from 15 August
Mumbai: Stocks of telecom operators Bharti Airtel and Idea Cellular tumbled after industrialist Mukesh Ambani-led Reliance Industries (RIL) on Friday announced the launch of the JioPhone 'intelligent smartphone'.
Around 14.30 pm., the scrip of telecom major Bharti Airtel fell by 2.7 percent to Rs 408.25. Earlier, Bharti stock plunged 4 percent to touch the day's low of Rs 403 on BSE.
Similarly, shares of Idea Cellular tumbled nearly 4 percent to Rs 91.10, after crashing 7 percent intra-day as investors trimmed their exposure in reaction to cut-throat competition going ahead in the telecom space.
Meanwhile, RIL stocks rose by 3.6 per cent to Rs 1,584.
RIL, at its 40th annual general meeting on Friday, announced the launch of JioPhone, which will be available for beta testing from 15 August. "The JioPhone will be available to all Indians for an effective price of Rs Zero," Ambani said in his address.
The benchmark indices -- the NSE Nifty and the BSE Sensex -- too, fell as investors booked profits. The Nifty fell by 21.20 points, or 0.21 per cent to 9,852.10 points, while the Sensex traded at 31,854.78 points -- down 49.62 points or 0.16 per cent.
Midcap and Smallcap indices also ended in losses. Oil & gas were the top gainers, while IT was the biggest drag
Weak global trends and persistent foreign fund outflows coupled with rising crude prices led to domestic markets snapping their three-day positive streak. However, they bounced back on the back of gains in oil & gas, metal, and auto sectors.
Markets ended higher for the third consecutive session led by a rally in IT stocks and positive global sentiment