Mumbai, Oct. 22: The bourses were left unimpressed a day after Videsh Sanchar Nigam (VSNL) resolved its contentious investment in Tata Teleservices (TTSL) to everyone’s satisfaction.
The stock slumped to a new 52-week low, breaching the three figure mark when it touched an intra-day low of Rs 97.10, before it was rescued when it closed at Rs 100.80 by bargain hunters.
Analysts attributed the decline to nervousness as investors fear that the bottomline and topline of the international telephony major would decline as public sector basic teleservices companies like BSNL and MTNL may try and wrest competitive rates from it.
While announcing the results VSNL had warned investors that the possibility of a downward revision in rates may detrimentally affect the counter. Moreover, concerns regarding dues receivable by VSNL from its international carriers, including Teleglobe Canada and WorldCom, further compounded its troubles.