Equity Alert: Idea up on value buying; telecom shrs mirroring mkts
MUMBAI--2PM--Idea Cellular shares were up 2% at 79.65 on value
buying
after a 6% fall on Monday.
"Other shares in the sector like Bharti (Airtel), Reliance
(Communications) fell significantly less than Idea, but in Idea there
was
probably some panic selling," an analyst said.
Shares in the telecom sector are otherwise mirroring the broad
market's
movement, analysts said, explaining the recovery after weakness in
early trade.
While the domestic telecom sector is partly insulated from global
volatility, the sharp fall in the rupee against the U.S. dollar is
likely to
result in large mark-to-market foreign exchange losses for them, an
analyst
said.
The Indian unit today slipped to 46.86 rupees per $1, from
Monday's close
of 46.05 rupees.
Telecom companies such as Bharti Airtel and Reliance
Communications have
large foreign borrowings that increase when the rupee falls.
The selling in Bharti Airtel earlier today was because of likely
bankruptcy of AIG, which holds stake in the Indian telecom major.
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