Mumbai: Shares of new telecom licensee companies were beaten down heavily in the stock market on Thursday after the Supreme Court cancelled as many as 122 2G licences granted by former telecom minister A Raja, but old players like Bharti Airtel and Idea Cellular saw smart gains.
However, some sort of recovery was seen during the later part of the day in the earlier-battered stocks as well, as some investors saw buying opportunity at lower levels, experts said.
Shares of realty firm Unitech, one of the promoters of Uninor, were the worst hit and settled for the day 7.04 percent down at Rs 25.10 on the BSE, after dropping as much as 14 per cent intra-day.
DB Realty, which had lost 8.62 percent during the day, trimmed most of the losses and closed the day 0.48 percent lower at Rs 62.30.
Videocon ended at Rs 171.95, down 0.92 percent.
"The Supreme Court judgement is a big blow to all the telecom companies whose licences are cancelled. Bharti is clear winner here as it was not entangled in all these issues. Major licence holders are affected and will suffer in the near term," Ashika Stock Brokers Research Head Paras Bothra said.
Bharti Airtel and Idea Cellular outperformed the broad-based selling pressure witnessed in the some of the telecom-related stocks.
Shares of Bharti surged 6.88 percent to close the day at Rs 385.95, becoming the best performer among the 30-Sensex blue chips.
In a similar fashion, the scrip of Idea, too, went up by 2.68 percent.
Shares of Reliance Communications which had lost 9.31 percent during the day, pared most of the losses and settled at Rs 96.85, down 3.54 percent.
RCOM said that licences to the company were issued in 2001 or prior to that and will not be affected by the Supreme Court judgement pronounced squashing all 122 licences allotted in January 2008.
"RCom's licences are not affected by the Supreme Court judgement pronounced today," it said in a statement.
The 122 licences were given by Raja for over Rs 9,000 crore, while 3G auctions for a smaller number of licences had fetched the government a sum of Rs 69,000 crore.
The BSE benchmark Sensex closed for the day 131.27 points higher at 17,431.85.