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Stocks related to the 2G declined on Monday after officials at the related group companies were charged by the Central Bureau of Investigation in a probe into the sale of mobile-phone licenses.
DB Realty lost 2.32 per cent to close at Rs 113.8 to a share while Reliance Communication lost 2.24 per cent to close the day at Rs 109.15. Unitech lost 1.31 per cent to end the day at Rs 41.3 to a share. Idea Cellular shed 0.22 per cent to close at Rs 67.45.
Experts said that investors were booking their losses in these stocks and getting out.
“The 2G business has now become like a commodity business,” said the head of research of an Indian brokerage. “With little upside on stock price, declining business growth and a flux in the policy with respect to 2G spectrum pricing, people have started exiting.”
Experts said that though it was well known that there were gaps in spectrum pricing, the Government has accepted it only recently. “So for players like Bharti, Idea, BSNL and Vodafone, it would only be a case of an incremental financial payout towards the 2G spectrum licence,” said a telecom analyst with a large brokerage.
“For other players, who have been embroiled in some controversy or the other it's hard times ahead.”
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