<p>Indian shares edged lower on Thursday, after retail inflation breached the Reserve Bank of India's (RBI) medium-term target of 4% for the first time in 15 months, while lenders fretted about possible insolvency of Vodafone Idea.</p>

<p>Annual retail inflation rose to 4.62% last month on higher food prices, but most economists expect the central bank to look past the inflation print and cut rates for a sixth straight time next month.</p>

<p>Higher inflation and reports of liquidation of Vodafone Idea were pulling down the markets, said Sumit Pokharna, vice president, Kotak Securities.</p>

<p>"If Vodafone Idea goes for a toss, then the pain will come to the banks. Again, the next leg of non-performing assets will start. Even private banks have exposure to Vodafone Idea," he said.</p>

<p>Aditya Birla Group will not infuse fresh equity into its venture with Vodafone and let it opt for insolvency if the government does not provide substantial relief, the Economic Times reported, quoting senior executives.</p>

<p>Vodafone Idea shares slumped as much as 23% to a record low in early trade.</p>

<p>Earlier this week, Vodafone said its future in India could be in doubt unless the government stopped hitting operators with higher taxes and charges, after a court judgment over licence fees resulted in a 1.9 billion euro group loss in its first half.</p>

<p>The NSE Nifty 50 index was down 0.3% at 11,806.65 as of 0413 GMT, while the S&amp;P BSE Sensex was 0.15% lower at 40,051.12.</p>

<p>The Nifty bank index, the public sector undertaking index and the private bank index&nbsp;were the top losers, down by 0.6% to 2.3%. All indexes except the Nifty information technology were in the red.</p>

<p>Bharti Infratel fell 8.7% and was the top loser in the Nifty 50, while Bharti Airtel fell 3.5% ahead of quarterly results due later in the day.</p>


Indian shares edged lower on Thursday, after retail inflation breached the Reserve Bank of India's (RBI) medium-term target of 4% for the first time in 15 months, while lenders fretted about possible insolvency of Vodafone Idea.

Indian shares edged lower on Thursday, after retail inflation breached the Reserve Bank of India's (RBI) medium-term target of 4% for the first time in 15 months, while lenders fretted about possible insolvency of Vodafone Idea. Annual retail inflation rose to 4.62% last month on higher food prices, but most economists expect the central bank to look past the inflation print and cut rates for a sixth straight time next month. Higher inflation and reports of liquidation of Vodafone Idea were pulling down the markets, said Sumit Pokharna, vice president, Kotak Securities. "If Vodafone Idea goes for a toss, then the pain will come to the banks. Again, the next leg of non-performing assets will start. Even private banks have exposure to Vodafone Idea," he said. Aditya Birla Group will not infuse fresh equity into its venture with Vodafone and let it opt for insolvency if the government does not provide substantial relief, the Economic Times reported, quoting senior executives. Vodafone Idea shares slumped as much as 23% to a record low in early trade. Earlier this week, Vodafone said its future in India could be in doubt unless the government stopped hitting operators with higher taxes and charges, after a court judgment over licence fees resulted in a 1.9 billion euro group loss in its first half. The NSE Nifty 50 index was down 0.3% at 11,806.65 as of 0413 GMT, while the S&P BSE Sensex was 0.15% lower at 40,051.12. The Nifty bank index, the public sector undertaking index and the private bank index were the top losers, down by 0.6% to 2.3%. All indexes except the Nifty information technology were in the red. Bharti Infratel fell 8.7% and was the top loser in the Nifty 50, while Bharti Airtel fell 3.5% ahead of quarterly results due later in the day.

Indian markets witness fall on inflation data in early trade; telecom worries hurt banks

<p>Britain&#39;s Vodafone Group will merge its Indian subsidiary with local rival Idea Cellular within two years,&nbsp;&nbsp;Idea said today. The new entity will compete with Reliance Jio that has unleashed a fierce price war.</p>

<p>Kumar Mangalam Birla will be the chairman of the merged entity.&nbsp;</p>

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<p dir="ltr" lang="en">I am pleased and honoured to be the chairman of the new company: Kumar Mangalam Birla after Vodafone India-IDEA merger (file pic) <a href="https://t.co/p7csrklCuz">pic.twitter.com/p7csrklCuz</a></p>
&mdash; ANI (@ANI_news) <a href="https://twitter.com/ANI_news/status/843710972409782272">March 20, 2017</a></blockquote>
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<p>According to some reports, Idea said Vodafone will own 45.1 per cent of the merged entity, after it transfers about 4.9 per cent to promoters of Idea and/or their affiliates for 38.74 billion rupees ($592.15 million) in cash. PTI, however, says&nbsp;both companies will have an equal stake.&nbsp;</p>

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<p dir="ltr" lang="en"><a href="https://twitter.com/hashtag/Vodafone?src=hash">#Vodafone</a>, <a href="https://twitter.com/hashtag/Idea?src=hash">#Idea</a> to have equal stakes in the merged entity over a period of time: chiefs of both companies.</p>
&mdash; Press Trust of India (@PTI_News) <a href="https://twitter.com/PTI_News/status/843708844052242437">March 20, 2017</a></blockquote>
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<p>The merger will see $10 billion&nbsp;in cost, capex synergies, reports said.</p>

<p>&quot;Vodafone Group Plc and Idea Cellular announced that they have reached an agreement to combine their operations in India,&quot; they said in a statement to the Bombay Stock Exchange (BSE).</p>

<p>&quot;The combined company would become the leading communications provider in India with almost 400 million customers, 35 per cent customer market share and 41 per cent revenue market share,&quot; the statement added.</p>

<p>The confirmation ended months of speculation that the two operators were ready to sign a deal to help fend off Reliance Jio, whose recent arrival has shaken up India&#39;s ultra-competitive mobile network market.</p>

<p>Shares in Idea rose as much as 14.25 per cent immediately after the merger news but gave up gains to be trading up 3.8 per cent.</p>

<p>The merger of Vodafone - the world&#39;s second-largest cellphone network operator - with the Aditya Birla Group firm - India&#39;s third-largest cellular operator - would create a company with around 387 million users and form one of the largest telecom companies in the world.</p>

<p>Since its entry in India in 2007, Vodafone has become the number-2 operator in the country, but its journey has been tumultuous as it is locked in a legal battle with the government over a $2 billion retrospective tax claim over its acquisition of Vodafone India from Hutchison in 2007.</p>

<p>It had written down value of business by 5 billion pound ($3.35 billion) late last year. The British firm has pumped in more than $7 billion into the India unit.</p>

<p>Backed by India&#39;s richest man Mukesh Ambani, Reliance Jio Infocomm is offering free voice calls and data till March and has notched up 74 million users. It has already invested over $25 billion and is investing another Rs 30,000 crore ($4.8 billion).</p>

<p>&nbsp;</p>

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<p>In what could be the biggest telecom operator merger in India, Idea Cellular has approved its amalgamation with Vodafone India. (WION)</p>
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<p>(WION)</p>


The merger will create a company with around 387 million users?and form one of the largest telecom companies in the world.

Britain's Vodafone Group will merge its Indian subsidiary with local rival Idea Cellular within two years, Idea said today. The new entity will compete with Reliance Jio that has unleashed a fierce price war. Kumar Mangalam Birla will be the chairman of the merged entity. I am pleased and honoured to be the chairman of the new company: Kumar Mangalam Birla after Vodafone India-IDEA merger (file pic) pic.twitter.com/p7csrklCuz — ANI (@ANI_news) March 20, 2017 × According to some reports, Idea said Vodafone will own 45.1 per cent of the merged entity, after it transfers about 4.9 per cent to promoters of Idea and/or their affiliates for 38.74 billion rupees ($592.15 million) in cash. PTI, however, says both companies will have an equal stake. #Vodafone, #Idea to have equal stakes in the merged entity over a period of time: chiefs of both companies. — Press Trust of India (@PTI_News) March 20, 2017 × The merger will see $10 billion in cost, capex synergies, reports said. "Vodafone Group Plc and Idea Cellular announced that they have reached an agreement to combine their operations in India," they said in a statement to the Bombay Stock Exchange (BSE). "The combined company would become the leading communications provider in India with almost 400 million customers, 35 per cent customer market share and 41 per cent revenue market share," the statement added. The confirmation ended months of speculation that the two operators were ready to sign a deal to help fend off Reliance Jio, whose recent arrival has shaken up India's ultra-competitive mobile network market. Shares in Idea rose as much as 14.25 per cent immediately after the merger news but gave up gains to be trading up 3.8 per cent. The merger of Vodafone - the world's second-largest cellphone network operator - with the Aditya Birla Group firm - India's third-largest cellular operator - would create a company with around 387 million users and form one of the largest telecom companies in the world. Since its entry in India in 2007, Vodafone has become the number-2 operator in the country, but its journey has been tumultuous as it is locked in a legal battle with the government over a $2 billion retrospective tax claim over its acquisition of Vodafone India from Hutchison in 2007. It had written down value of business by 5 billion pound ($3.35 billion) late last year. The British firm has pumped in more than $7 billion into the India unit. Backed by India's richest man Mukesh Ambani, Reliance Jio Infocomm is offering free voice calls and data till March and has notched up 74 million users. It has already invested over $25 billion and is investing another Rs 30,000 crore ($4.8 billion). In what could be the biggest telecom operator merger in India, Idea Cellular has approved its amalgamation with Vodafone India. (WION) × (WION)

Vodafone, Idea Cellular to merge, set to become India?s largest telecom operator

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Indian markets witness fall on inflation data in early trade; telecom worries hurt banks

Vodafone, Idea Cellular to merge, set to become India?s largest telecom operator