Telecom shares came crashing on Wednesday, 18 March, led by Vodafone Idea which plunged 35 percent after the Supreme Court pulled up the Centre and telecom companies for doing self-assessment or reassessment of the Adjusted Gross Revenue (AGR) dues fixed by the apex court in its verdict given on 24 October 2019.
Vodafone Idea plunged 34.85 percent to close at Rs 3.16 on the BSE. During the day, it dived 40 percent to Rs 2.91. Bharti Airtel also declined 6.14 percent to close at Rs 426.20 after falling 9.86 percent to Rs 409.30 during the day. Both the companies erased their early gains.
The apex court, which was also anguished by frequently published newspaper articles on the AGR issue, said all managing directors of telecom companies will be personally responsible and will be held for contempt of court for any such future newspaper articles.
The BSE telecom index plunged most by 9.48 percent as all its components cracked including Bharti Infratel which tanked 22.62 percent.
“The global mayhem combined rising coronavirus cases in India triggered the initial fall, which further worsened with the Supreme Court’s stance on AGR dues.”Ajit Mishra, VP - Research, Religare Broking Ltd
In the equity market, the BSE benchmark tumbled 1,709.58 points or 5.59 percent.
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