2G scam-hit telecom stocks may face heat
A section of brokers, however, felt that the development would not have an major impact on the stocks.
By Anuradha Himatsingka, ET Bureau | Updated:
KOLKATA: The chargesheet filed by the Central Bureau of Investigation in the 2G scam related to issuance of new unified access services licences (UASL) and allocation of 2G spectrum in 2008 against Unitech MD Sanjay Chandra and ADAG’s three senior executives, among others, will have an impact on their stocks when the market opens on Monday.
“Nobody would like to look at these companies for some time, at least. Fund managers will shun the stocks, especially that of Unitech. But since the company’s stock has already got hammered in the past three-to-four months, the fall in Unitech’s stock price will be minimum, I feel. As far as ADAG companies, the impact will be minor,” said Amisha Vora, joint MD, Prabhudas Lilladhar.
Seconding Vora’s emotions, Kolkata-based tea estate owner and large HNI investor Kaushal Kumbhat said, “The chargesheet against A Raja, Reliance Telecom, Unitech and Swan Telecom, amongst others, in the 2G telecom scam is sure to put additional pressure on stock prices of alreadybeleaguered Reliance Telecom, DB Realty and Unitech, reeling from a string of negative news flows. I would strongly advise investors to exercise caution till some degree of clarity emerges. Also, with more chargesheets on the way, investors should remain wary.”
A section of brokers, however, felt that the development would not have an major impact on the stocks and remained largely unperturbed by the issuance of the chargesheet claiming that the market has already factored in these developments.
“Nobody would like to look at these companies for some time, at least. Fund managers will shun the stocks, especially that of Unitech. But since the company’s stock has already got hammered in the past three-to-four months, the fall in Unitech’s stock price will be minimum, I feel. As far as ADAG companies, the impact will be minor,” said Amisha Vora, joint MD, Prabhudas Lilladhar.
Seconding Vora’s emotions, Kolkata-based tea estate owner and large HNI investor Kaushal Kumbhat said, “The chargesheet against A Raja, Reliance Telecom, Unitech and Swan Telecom, amongst others, in the 2G telecom scam is sure to put additional pressure on stock prices of alreadybeleaguered Reliance Telecom, DB Realty and Unitech, reeling from a string of negative news flows. I would strongly advise investors to exercise caution till some degree of clarity emerges. Also, with more chargesheets on the way, investors should remain wary.”
A section of brokers, however, felt that the development would not have an major impact on the stocks and remained largely unperturbed by the issuance of the chargesheet claiming that the market has already factored in these developments.
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