Sell-off, telecom meltdown continue

The stock market saw the steepest fall after August on Tuesday as benchmark indices fell for the sixth straight trading session on huge sell-off in heavy weight stocks and weak cues from global markets.

The pressure on telecom stocks continued as Reliance Communications fell 5.7% to close at Rs 165.8, in it seventh straight day of losses. Though its rival Bharti Airtel closed on the positive zone, the pressure on telecom stocks persisted. In the current year, RComm slid by 27% and Bharti by 16% when the benchmark Sensex jumped 64%.

Analysts like Arup Misra of Elara Captial said RComm could face more selling pressure if the first 3G auction is held only for the GSM players,which the company is not. This will delay its entry into the new field.

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