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RComm falls after Bharti Airtel signs pact with Reliance Jio

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Reuters MUMBAI
Last Updated : Apr 23 2013 | 11:50 AM IST

MUMBAI (Reuters) - Shares in Reliance Communications Ltd fell as much as 5 percent after Reliance Industries Ltd's telecom unit, Reliance Jio Infocomm, and Bharti Airtel Ltd entered into an agreement for international data connectivity.

"Tie-up with Bharti means Reliance is open to players other than Reliance Comm as well, which decreases the probability of further deals between Reliance Communications and Reliance Industries," said G. Chokkalingam, executive director & chief investment officer, Centrum Wealth Management.

The Anil Ambani-controlled Reliance Communications has gained 76.8 percent in April as of Monday's close, on hopes that the company will extend its pact with brother Mukesh Ambani-controlled Reliance Industries.

Earlier this month, the two companies signed a pact which would allow Reliance Jio to use the fibre optic network of Reliance Communications, signalling the first sign of thaw in relation between the estranged brothers.

(Reporting by Abhishek Vishnoi; Editing by Anand Basu)

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First Published: Apr 23 2013 | 11:36 AM IST

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