 "Markets end flat, telcos slump as Reliance Jio raises 2G auction bar")
Indian equity markets today ended flatafter earlier marking its highest levels in five weeks as mobile carriers such as Idea Cellular slumped on possible high bidding prices at a spectrum auction next month after eight companies applied to bid.
The Sensex was down 24.31 points at 21265.18, and the Nifty ended at 6318.90, down 2.00 points. About 1149 shares have advanced, 1486 shares declined, and 261 shares are unchanged.
The benchmark is likely to consolidate in near term as it is facing stiff resistance at the higher end of the trading range.
Idea Cellular slumped 7.5 percent, marking its biggest single-day percentage fall since May 2010, while Bharti Airte provisionally fell 5 percent, the most since September 2013, aseight companies submitted applications for the spectrum auction, signalling a stronger-than-expected competition.
Reliance Jio Infocomm joined top telcos Bharti Airtel, Vodafone India and Idea Cellular in applying to bid for spectrum in auctions beginning February 3, setting the stage for a grand fight, especially in the 900 Mhz band.
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HCL Tech (up 4.63 per cent), Coal India (up 2.52 percent), UltraTech Cement (up 2.45 percent), Hindalco (up 2.03 percent) and Wipro (up 1.75 percent) were among the gainers.
Shares of HCL Technologies hit life-time high in early trade after the company’s net profit and margins beat analysts expectation. Brokerages continue to maintain their ‘bullish’ view on the stock and are likely revise their view after earnings call is over.
In a major relief to the government, Moody’s in its latest report has said that India’s rating downgrade is not on the cards. Moody’s has given India an investment grade rating of Baa3 with a stable outlook. This follows the World Bank report which projected India’s growth to rise to over 6 percent in FY2014-15 followed by 7.1 percent growth in FY2016-17.
Meanwhile, the empowered group of ministers todayapproved a 10 percent divestiment in Indian Oil (IOC) through block deals to ONGC, Oil India.