Telecom stocks rise after 2G verdict

At the S&P BSE, the scrip of Reliance Communications rose by 4.05 per cent to Rs 17.97 per equity share from its previous close. DB Realty jumped nearly 20 per cent to close at Rs 43.70 while Sun TV Networks Ltd rose as much as 6.8 per cent before closing at Rs 982.10, a gain of 4.5 per cent over previous day close. 

Similarly, the stock of Idea Cellular gained by 3.37 per cent to Rs 101.35. In addition, the share price of real estate major Unitech, which was involved in the alleged scam, rose by 11.86 per cent to Rs 7.92. 

However, industry major Airtel’s stocks traded on a flat-to-negative note. The stock price slipped by 0.88 per cent to Rs 523.95. The upward movement in telecom stocks’ prices came after Special Judge OP Saini acquitted all the accused, including then Telecom Minister A Raja and DMK MP Kanimozhi, in both the cases filed by the CBI and Enforcement Directorate (ED). 

The alleged scam on the issuance of licences and allocation of 2G spectrum by the Department of Telecom occurred during the Congress-led UPA government’s first tenure in 2008, but was widely reported in 2010 following a report by the Comptroller and Auditor General of India (CAG).