Telecom stocks oscillate on 2G issue as Sensex closes 131 pts up

3.30 p.m: After the initial volatility caused by the 2G scam judgement, markets were largely range bound. Sensex closed the day at 17,405 a gain of 105 points while Nifty closed at 5269 a gain of 32 points.

Telecom stocks naturally saw very high volatility with Bharti Airtel closing the day 6.56 percent higher at Rs 385 while Idea closed 3 percent higher at Rs 96. The companies are likely to be the biggest beneficiary after Supreme Court cancelled 122 licences which were issued after January 2008.

Reliance Communication on the other hand closed 4.28 percent lower at Rs 96, while Unitech closed 7 percent lower at Rs 24.95. Though none of Reliance Communication’s licence have been cancelled the company was hit with controversy due to its investment in Swan Telecom. Unitech was one of the promoter in Uninor, whose licenses have been cancelled.

Among other stocks that were impacted are banks who have exposure to the sector. SBI closed 0.5 percent lower at Rs 2067, IDFC was down 5 percent at Rs 130.95 while IDBI closed 2.65 percent at Rs 97.30.

Government once again deferred divestment judgement on ONGC and BHEL. While ONGC closed the day 1.56 percent higher at Rs 276.70, Bhel closed 0.88 percent higher at Rs 257.70.

Hexaware announced a better than expected set of numbers followed by a strong guidance. The stock closed the day 10.5 percent higher at Rs 97.25.

Aban closed 15 percent after announcing its results to close at Rs 549. However, most of the analyst have recommended a sell on stock due to its exposure in Iran.

ONGC divestment not cleared, Sensex up 165 pts

2.30 p.m: One more chance to reduce the fiscal deficit has been wasted with the Empowered Group of Ministers not clearing the divestment of ONGC. Share auction and FPO is being considered now to raise funds. ONGC trades at 1.5 percent higher at Rs 276. The stock has come down marginally after the newsbreak.

Sensex trades at 17,442 up 140 points while Nifty trades at 5264 up 29 points.

Bharti Airtel meanwhile continues to trade 7 percent higher at Rs 385.95. Idea trades 2.25 percent higher at Rs 95.40.

Reliance Industrial Infra meanwhile trades 12.75 percent higher at Rs 499.25.

Metal stocks are trading higher on good global manufacturing data. Sterlite trades at Rs 125.60 up 5.15 percent after copper prices shot up in the international markets. Hindalco trades 3.26 percent higher at Rs 158.20.

Bharti gains 8% on 2G judgement, Sensex up 175 pts

12.45 p.m: Markets have rebounded from its day low after the 2G judgement announced by the Supreme Court. Sensex trades at 17,439 up 143 points while Nifty has gained 35 points at 5271.

Bharti Airtel trades 7.2 percent higher at Rs 387 as the company has come clear in the licence issue. Further, the company will be the biggest beneficiary as smaller players who were aggressively pricing their services will now be prevented from doing so.

Idea Cellular too trades 3.17 percent higher at Rs 96.10, despite the fact that 9 of its licences has been cancelled. However, these licenses are largely in the North Eastern part of the country which has not been too big a market for the company. Further, Idea Cellular is the biggest beneficiary till date from the number portability shifts.

Though Reliance Communication’s name has not been mentioned in the judgement, the stock trades 4.18 percent lower at Rs 96.25 due to the company’s exposure in Swan.

Bhel trades 3 percent higher at Rs 263.8 as the government meets today to discuss divestment in the company.

IDFC, PNB and SBI trade lower due to their exposure to telecom shares. IDFC is down 5 percent at Rs 130.95, SBI is down 1.56 percent at Rs 2046 while PNB is down 1.23 percent at Rs 943.70.

SBI down 3.5% on exposure to telecom sector

11.00 a.m: Supreme Court cancelled the 122 licences issued post January 2008. While the bigger telecom companies have reacted positively as they will benefit from lower competition and freeing of additional spectrum, the smaller ones who had been issued all their licences post 2008 have been affected.

Bharti Airtel trades 3 percent higher at Rs 373 while Idea is down 4 percent at Rs 89 as 9 of its licences has been cancelled. Unitech, owner of Uninor is down 9.8 percent at Rs 24.35, DB Realty is down 5.5 percent at Rs 59.15, Videocon is down 2.4 percent at Rs 169.50.

Banking major SBI is down 3.5 percent on its exposure to telecom sector at Rs 2001.

Sensex meanwhile trades 44 points to 17,354 while Nifty is up 6 point at 5243.

Bharti Airtel jumps 7% on 2G judgement

9.45 a.m: Hexaware posted a sharp jump in its profit both on a quarter on quarter basis and a year on year basis. Net profit on a YoY basis has increased by 123 percent while on a QoQ basis is up 36.5 percent. The stock reflects the strong performance and has jumped up 11 percent percent at Rs 97.55

Meanwhile Sensex trades 163 points higher at 17463 while Nifty is at 5277 up 42 points.

Mahindra Satyam trades 3 percent higher at Rs 78.55 after the company posted a strong set of numbers.

ICICI Bank is up 2 percent at Rs 907.60 while SBI trades 1 percent higher at Rs 2101.

Reliance has gained by nearly 1 percent at Rs 838.85 while Bhel has gained by 3 percent to Rs 263.25.

SKS Micro jumps 5% post funding, Sensex up 175 pts

9.15 a.m: Asian markets are trading nearly 1 percent higher as European markets trade closed 2 percent higher with the US closed 1 percent up on the back of strong manufacturing data released on Wednesday.

Indian markets open higher in line with the global markets.

Among the stocks that can see action today are Ashok Leyland which posted a sharp jump in net profit by 54 percent to Rs 66.9 crore while its profit grew by 28 percent to Rs 2,880 crore.

Maruti can witness some action after the launch of the new Swift Dezire which it plans to sell at a rate of 8000 cars a month.

Petronet LNG can witness some pressure on a government probe on its imports of buying Lean Gas which can not be used to produce petrochemicals and cooking gas.

SKS Microfinance can witness some action as the company has been given a lifeline from Small Industries Development Bank of India of Rs 100 crore, the first financial institution to lend money to it after the microfinance company faced huge defaults on its small loans in Andhra Pradesh.

Among the companies announcing their results today are Andhra Bank, Corporation Bank and Essar Ports.