Abstract

India has the world 2nd largest telecommunication market. Telcom is one of the fastest growing sectors that provide services to millions of customers. With the increasing competition in the sector, Telecom companies are launching alluring schemes and plans to attract customers. The advent of Reliance-Jio brought the ripple effect in the telecom sector by providing the free data and call services for 10 month to 130 million subscribers. This has jolted the entire telecom companies and resulted into huge loss. This paper aims to study the financial performance and stock performance of Telecom sector against Pre- Launch and Post –Launch of Reliance Jio 4G. The study has been conducted by applying granger causality, impulse response, and variance decomposition to know the impact of Reliance jio on Telecom industry. It has been observed that the Reliance Jio has a short term impact on Telecom sector which later ceased to exist in 2017-18.