Reliance Jio Effect: 15.6k crore wipes off from Market

mukesh-jioWith the launch of Reliance Jio, Bharti Airtel Ltd Airtel, Idea Cellular Ltd and Reliance Communications Ltd lost thousands of crores in market value on Thursday after Reliance Industries Ltd (RIL) chairman Mukesh Ambani announcement.

Reliance Jio’s “Data-giri” is like to have adverse effect on present players in telecom industry. Data plans offered by the new player is 1/10 th prices offered by present players.

Jio plans to enter with 10 plans , Jio network will cover 18k cities, 2 lakh villages by march 2017.

Shares of market leader Bharti Airtel fell over 9 per cent, while Aditya Birla Group-owned Idea Cellular shares sank as much as 11 per cent- Both the companies combinedly lost 15,600 cr.Idea shares closed 10.5 per cent lower at Rs 83.65, while Reliance Communications shares tumbled 9 per cent to end at Rs 49.10. Bharti Airtel shares closed off the day’s low, ending 6.3 per cent lower at Rs 310.85.