Telecom stocks soar after Airtel hikes tariff
July 25th, 2011 - 8:16 pm ICT by IANSNew Delhi, July 25 (IANS) Led by Anil Ambani controlled Reliance Communication, telecom stocks soared Monday from expectations that these companies would hike tariffs after Bharti Airtel raised call rates by 20 percent over the weekend.
At the Bombay Stock Exchange, the shares of Reliance Communications rose a whopping 14.91 percent up at Rs.107.50. The scrip had touched an intra-day high of Rs.108.50.
Bharti Airtel’s move has given a break to the cut-throat competition among telecom operators who were so far offering dirt cheap tariffs.
With the entry of new players and the ensuing tariff wars, the high priced bidding for 3G auctions, which saw top operators like Bharti Airtel and Reliance Communications coughing up Rs.12,295 crore and Rs.8,583 crore respectively, had led to margins being hammered.
Bharti Airtel’s shares closed 5.37 percent up at Rs.433, slipping a bit from its intra-day high of Rs.438.5, while Tata Communications scrip moved up 5.65 percent at Rs.232.75. It had risen to a high of Rs.234.35 during the day.
Aditya Birla group’s Idea Cellullar shares closed 7.97 percent up at Rs.92.10.
Among the 13 sectoral indices on the BSE, the telecom index came out tops. The Indian telecom story has been marred in the last few years, following unearthing of the scam in allocation of second generation spectrum. The scandal had also led to a crisis of confidence in these stocks on the bourses.
- TRAI quizzes telcos on tariff hike - Aug 25, 2011
- Telcos can fix call tariff depending on market conditions - Aug 26, 2011
- Reliance Communications hikes call tariffs by 20 percent - Aug 14, 2011
- No hike in tariff: MTNL - Aug 03, 2011
- Telecom stocks rise day after draft policy - Oct 11, 2011
- Mobile call tariffs to hike even further: Mittal - Sep 06, 2011
- After Airtel, small operators may increase tariff - Jul 24, 2011
- Reliance-ADAG shares rally - Dec 27, 2011
- Supreme Court order takes toll on telecom scrips - Feb 02, 2012
- Idea, Vodafone end one paisa tariff - Jul 28, 2011
- New telecom firm promoter scrips fall, older one's gain on SC order (Lead) - Feb 02, 2012
- Day ahead of monetary policy review, Sensex closes 149 points up (Roundup) - Jul 25, 2011
- Reliance Group firms' stocks soar - Feb 28, 2012
- Fresh 2G auction: Consumer may be spared large hike - Feb 19, 2012
- Bharti Airtel scrip falls after CBI raids - Nov 21, 2011
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