AFP, Mumbai :
Shares in Indian telecom giants Vodafone Idea and Bharti Airtel went through wild swings on Friday, initially sinking more than ten percent at the open, after the British joint venture reported the worst quarterly loss in Indian corporate history.
Vodafone Idea reported a net loss late Thursday of 509 billion rupees ($7.1 billion) in July-September as it factored in a $4 billion bill levied by Indian authorities.
India’s Supreme Court last month ordered telecom firms to pay a combined 920 billion rupees in spectrum and licensing fees — a ruling that hit Vodafone Idea the hardest.
The company’s shares recovered after the initial plunge, edging up four per cent from its Thursday closing price.
Vodafone Idea and Bharti Airtel, another major operator told to pay $3 billion, have warned that the ruling will exacerbate the beleaguered telecom sector’s financial woes.
Bharti Airtel announced quarterly losses of 230 billion rupees on Thursday, but gained six percent in morning trade on Friday.
In London on Tuesday, Vodafone reported a net global loss of more than $2.7 billion in the first half of the financial year, with chief executive Nick Read saying that the company was facing a critical situation in India.
The British telecom giant also announced that it would not invest any more equity in India since the South Asian market contributed zero to its global share valuations.
Shares in Indian telecom giants Vodafone Idea and Bharti Airtel went through wild swings on Friday, initially sinking more than ten percent at the open, after the British joint venture reported the worst quarterly loss in Indian corporate history.
Vodafone Idea reported a net loss late Thursday of 509 billion rupees ($7.1 billion) in July-September as it factored in a $4 billion bill levied by Indian authorities.
India’s Supreme Court last month ordered telecom firms to pay a combined 920 billion rupees in spectrum and licensing fees — a ruling that hit Vodafone Idea the hardest.
The company’s shares recovered after the initial plunge, edging up four per cent from its Thursday closing price.
Vodafone Idea and Bharti Airtel, another major operator told to pay $3 billion, have warned that the ruling will exacerbate the beleaguered telecom sector’s financial woes.
Bharti Airtel announced quarterly losses of 230 billion rupees on Thursday, but gained six percent in morning trade on Friday.
In London on Tuesday, Vodafone reported a net global loss of more than $2.7 billion in the first half of the financial year, with chief executive Nick Read saying that the company was facing a critical situation in India.
The British telecom giant also announced that it would not invest any more equity in India since the South Asian market contributed zero to its global share valuations.
