In a lacklustre trading session on Thursday, it was RIL Chief Mukesh Ambani who caught spotlight of Dalal Street investors. Within an hour of his speech at the RIL's 42th Annual General Meeting, Bharti Airtel eroded Rs 12,000 crore in market capitalisation, while Idea Cellular lost Rs 2,800 crore in market value. Other than telecom, auto sector also hogged the limelight as Maruti Suzuki, Mahindra & Mahindra and Ashok Leyland declared their August auto sales number.
Below is the wrap-up of all important developments that shaped the market today:
1. Reliance Jio launch: Reliance launched its Jio network, slashing data prices to that of 1/10th of market rates. It announced free voice calling, zero roaming charges and cheaper data tariffs for Jio customers. The entry of Reliance Jio is all set to disrupt the telecom sector, and the effect of which was well reflected in the stocks of incumbent telecom players. Bharti Airtel crashed 8.99 per cent intraday, while Idea Cellular tanked 11 per cent.
2. Cement Industries: Shares of cement companies such as ACC, Ambuja Cements and Jaiprakash Associates shed up to 5 per cent in trade on Thursday after Competition Commission of India on Wednesday imposed more than Rs 6,700 crore penalty on 11 cement companies for cartelisation. A fine of Rs 1,147.59 crore has been imposed on ACC, while penalties on Jaiprakash Associates and Ultratech are Rs 1,323.60 crore and Rs 1,175.49 crore, respectively.
3. Manufacturing eases GDP disappointment: Factory activity expanded at its fastest pace in 15 months in August, helped by surging new orders, while only modest price increases should give the central bank scope to ease policy further, a private survey showed. The data somewhat eased investors' concern over lower-than-expected GDP print, that came in at 7.1 per cent for the June quarter. The economy had grown at the rate of 7.9 per cent in the March quarter.
4. Auto industry posts quarterly results: Three listed auto companies reported their August sales data today. Maruti Suzuki and Mahindra & Mahindra posted a jump of 12.2 per cent and 14 per cent, respectively while Ashok Leyland reported a loss of 8 percent in the auto sales in August.
The shares of Ashok Leyland fell as much as 4.73 per cent to Rs 83.95 while Maruti Suzuki rose 0.83 percent. Mahindra & Mahindra shares surged 1.76 percent in trade today.