India's Tech Mahindra falls as SpaceX deal sparks telecom sector concerns
BUZZ-India's Tech Mahindra falls as SpaceX deal sparks telecom sector concerns ** Shares of India's Tech Mahindra TEML.NS fall 3.58% to 1,459.90 rupees, as concerns over growing competition from satellite-based mobile services weigh on global telecom sector
** Stock is the biggest loser on Nifty IT index .NIFTYIT which is down 0.72%
** US and European telecom stocks tumbled on Friday after SpaceX agreed to acquire an 800 MHz spectrum portfolio for about $8 billion, raising concerns over competition from its Starlink Mobile service
** Tech Mahindra has significant exposure to telecom clients, making it vulnerable to potential spending uncertainty in the sector
** SpaceX deal could allow Starlink Mobile to compete more directly with conventional wireless carriers by offering satellite connectivity that bypasses cell towers where possible
** YTD, TEML down 8.33% vs NIFTYIT's 25.2% drop
(Reporting by Surbhi Misra in Bengaluru)
((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))
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