2G Probe Fears Hit ADAG Cos Again

Most of ADAG companies, led by RCOM, slipped 4-5% to underperform the broader market as rising concerns over 2G scam probe returned to haunt after the recent relief rally in ADAG stocks. The fall wiped off most of the gains recorded by these shares early this week.
The bearish market outlook over macroeconomics concerns triggered by surging oil prices in the international market, and 2G scam related worries prompted investors to adopt a cautious approach and to book profit in ADAG stocks after recent gains, according to brokers. "The impact of 2G scam on the market sentiment will continue to linger for some time. The shares of companies whose names have cropped up in the scam will remain under pressure till JPC gets into action and some clarity emerges on the extent of their involvement," said Anagram Stockbroking CEO Mayank Shah while declining to comment on specific company or group.
Leading the pack of ADAG losers is RCOM which touched a new low of . 85.2 before closing 5.4% down at . 87.9 on Friday. Reliance Infra-structure lost 4.6% to end at . 638 while Reliance Mediaworks fell 4% to . 133.
Reliance Power was down 1.6% at . 109 on the BSE. Of these stocks, Reliance Infrastructure had climbed 12% on Wednesday after Anil Ambani met Maharashtra chief Minister Prithviraj Chavan to discuss the state government's coastal road plan and also to appraise him on the status of the . 5,000-crore project to extend Bandra-Worli Sealink to Haji Ali. The CBI has questioned ADAG's officials as part of its investigation into 2G spectrum allocation initiated after the CAG found irregularities in spectrum allocation to telecom operators that is expected to have caused the government a multi-billion revenue loss.
The auditor's report has accused RCOM, through its Reliance Telecom unit, of violating licensing rules by holding over 10% of Swan Telecom, which applied for a 2G licence in 2007.
RCOM, however, has clarified to the media that it had not violated any of its licence conditions at any stage by having cross-holdings of 10% or more in any other licensee and the company is in full compliance with all applicable DoT guidelines, rules and regulations.