Telecommunications shares rise after announcements of rate increases; together they add more than Rs 33k cr in m-cap
New Delhi, December 2 () The shares of the telecommunications companies rose on Monday following the new tariff plans announced by the operators that will take effect as of December 3.
Vodafone Idea shares closed at Rs 7.79 each, 14.06 percent, in the BSE. During the day, the stock reached a maximum of Rs 8.49, a jump of more than 24 percent. The stock appreciated 13.87 percent to Rs 7.80 in the NSE. During the day, the price of the shares varied between Rs 7.50 and Rs 8.80, with a zoom of more than 28 percent.
More than Rs 146 million from Vodafone Idea were traded in the NSE and more than Rs 11 million in BSE.
Bharti Airtel rose 3.67 percent to settle at Rs 458.55 in BSE. The stock gained 9.82 percent in early trading to reach the maximum of 52 weeks at Rs 485.75.
In the NSE, shares rose 9.75 percent during the day to Rs 485.60.
Later, 4.12 percent was established at Rs 460.70.
In terms of volume, more than Rs 5 million from Bharti Airtel were traded on the NSE. Meanwhile, the BSE saw an exchange of more than 20 Lakh shares.
Analysts said the renewed interest in telecommunications stocks is largely due to the increase in rates.
Telecommunications companies announced a rate increase in the range of 15% and 40% in different plans, which is expected to partially relieve the stress of telecommunications and help improve ARPUs. In addition, a favorable judicial outcome would give the government room to reduce AGR taxes and decrease industry burden, said Paras Bothra, president of Equity Research, Ashika Stock Broking.
Mobile calls and Internet charges will increase by up to 50 percent in the country, as private sector actors, Bharti Airtel, Vodafone Idea and Reliance Jio, announced on Sunday their plans to increase rates from 3 December.
Reliance Jio said on Sunday it will launch new unlimited plans starting December 6, which will increase its voice and data rate by up to 40 percent.
Reliance not listed Jio Infocomm is part of Reliance Industries, whose shares gained 2.28 percent to settle at Rs 1,586.30 in the BSE. In the NSE, the scrip rose 2.30 percent to close at Rs 1,586.90.
The stock reached a maximum of 52 weeks in the stock exchanges during the day. The companies together totaled more than Rs 33,000 crore in market capitalization. Reliance Industries has a share of more than Rs 22,000 crore, Bharti Airtel on Rs 8,300 crore and Vodafone Idea Rs 2,700 crore. RUJ SHW SHW