Telecom stocks hammered

Three telecom stocks fell 4% to 7% on BSE, on concerns about the price war in the sector.

Idea Cellular (down 4.14% to Rs 54.45), Bharti Airtel (down 6.65% to Rs 308) and Reliance Communication (down 7% to Rs 207.40), edged lower.

Meanwhile, the BSE Sensex was down 414.62 points, or 2.48%, to 16,325.88.

Idea Cellular's managing director Sanjeev Aga on Monday, 26 October 2009 said, the price war in the telecom sector which he described as a 'bloodbath' would cut local call charges, currently at 40 paise a minute, to 'unsustainable' levels.

Idea Cellular had underperformed the market over the past one month till 26 October 2009, falling 25.02% as compared to the Sensex's 0.28% rise. It had also underperformed the market in the past one quarter, declining 30.35% as compared to the Sensex's return of 8.85%.

Reliance Communication had underperformed the market over the past one month till 26 October 2009, declining 26.05% as compared to the Sensex's 0.28% rise. It had also underperformed the market in the past one quarter, falling 19.29% as compared to the Sensex's return of 8.85%.

Bharti Airtel had underperformed the market over the past one month till 26 October 2009, falling 20.37% as compared to the Sensex's 0.28% rise. It had also underperformed the market in the past one quarter, declining 22.83% as compared to the Sensex's return of 8.85%.

Idea Cellular's net profit surged 81.63% to Rs 273.15 crore on 20.23% rise in net sales to Rs 2760.61 crore in Q2 September 2009 over Q2 September 2008. The company declared the results on Monday, 26 October 2009.

Reliance Communication's net profit rose 6.51% to Rs 370 crore on 5.36% fall in net sales to Rs 3006.13 crore in Q1 June 2009 over Q1 June 2008. The company will declare its Q2 September 2009 results on 30 October 2009.

Bharti Airtel's net profit rose 31.30% to Rs 2687.51 crore on 14.54% rise in net sales to Rs 9040.51 crore in Q1 June 2009 over Q1 June 2008. The company will declare its Q2 September 2009 results on 30 October 2009.