Supreme Court Ruling Impacts Telecom Sector
Telecom companies faced a massive legal setback. Supreme Court rejected their relief plea regarding adjusted gross revenue (AGR) dues. Because of this, Vodafone Idea (VI) shares dived.
Market Reaction to Judgment
Vodafone Idea's share price has fallen 10% intraday on Monday. VI shares dropped 8.28%, till 1:50 PM, on the NSE. The decline followed after their petition was rejected by the court.
Petition by Telecom Firms Dismissed
Vodafone Idea, Bharti Airtel, and Tata Teleservices had also filed a joint appeal. They wanted relief from interest, penalty, and interest on penalty in respect of AGR dues. Their appeal was not heard by the Supreme Court and was dismissed.
Market Sentiment Erodes
Investors did not like this. Concerns are that telecom companies will be put under more financial stress. Vodafone Idea shares remained under selling pressure. Bharti Airtel's share, however, was relatively neutral.
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