Shares of Idea Cellular tanked 6.65 per cent, while Bharti Airtel plunged 4.87 per cent. Telecom stocks fell by as much as 7 per cent amid concerns that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt market share and profitability of telcos.
Similarly, Reliance Communications lost 3.74 per cent on the BSE.
"Telecom stocks fell amid worries that Reliance Jio Infocomm's participation in the upcoming spectrum auction will hurt the market share and profitability of telcos," said Paras Bothra, Research Head, Ashika Stock Brokers.
Bharti Airtel, Vodafone and a surprise entrant Reliance Industries are among the 8 telecom operators that have applied for bidding in the next month's spectrum auction through which the government is expecting at least Rs 11,300 crore. Tata Teleservices, Idea Cellular Ltd and Anil Ambani Group's Reliance Communications were the other prominent firms to apply at the close of applications yesterday.
The application by Mukesh Ambani-led Reliance Industries's telecom arm, Reliance Jio Infocomm Ltd came as a surprise as the company is working to launch 4G wireless broadband services soon.
About 403 megahertz of 2G spectrum in the 1800 MHz band and 46 MHz of spectrum in the premium 900 MHz band is being put up for auction.