Mumbai: Shrugging off the last two sessions of gains, telcom companies Tuesday slumped on the BSE, with RCom falling the steepest at 5.53 percent, as investors booked profits amid a bearish market sentiment, triggered by higher--than- expected rate hike by the RBI.
The central bank's decision Tuesday to hike key interest rates by 0.50 percentage points, spooked the market; Sensex plunged by over 353.07 points to 18,518, as investors feared higher interest rates would inflate the companies costs and crimp their profits.
Reliance Communications (RCom), which had in the previous session gained nearly 15 percent, emerged as the worst performer at the 30-scrip Sensex. It tumbled down 5.53 percent at Rs 101.55 a piece on the BSE.
Bharti airtel, the country's largest telecom company in terms of subscribers, also lost 2.04 percent at Rs 424.15 a piece on BSE. The stock had touched its one-year high in the last trading session.
State-run MTNL plunged by 4.15 percent to Rs 46.15, while Idea Cellular shed 1.90 percent to Rs 90.35 and Tata Teleservices (Maharashtra) 3.07 percent at Rs 22.10 a piece.
First Published: Tuesday, July 26, 2011, 21:00