MTNL Dips 2.4% On Q3 Concerns, Selloff Blues

Mumbai, January 22: | Updated: Jan 23 2003, 05:30am hrs
MTNL was the biggest loser among Sensex stocks on selling pressure especially from domestic funds, ahead of its quarterly results. On BSE, MTNL declined 2.4 per cent, closing at Rs 85.70, as against its previous close of Rs 87.85. A total of 1,94,155 shares were traded.

Dealers said that in five sessions between Januray 14 and 21, MTNL had gained eight per cent to Rs 87.85, from Rs 81.35. They added that the surge was on rumours of a huge special dividend in the current fiscal for meeting the governments disin-vestment target.

Dealers said that Wednesdays slide was on overall selling pressure ahead of the third-quarter results, which are expected to be poor.

As per market buzz, domestic funds went on a selling spree on concerns over the companys growth prospects due to increasing competition from new players.

Telecom analysts estimate an 8-9 per cent fall in MTNLs profit and 7-10 per cent drop in net sales.

Analysts said that the financial performance of MTNL has been poor so far, and the only trigger for the companys stock is disinvestment.