Bharti Airtel share cost hit a new all-time higher, when other telecom stocks jumped ahead of the Union Cabinet meeting scheduled later today to think about monetary relief to embattled corporations. Bharti Airtel share cost hit a record higher of Rs 719.60, increasing more than 3 per cent on BSE. MTNL stock gained practically 2 per cent when Reliance Communications added 1.6 per cent. Vodafone Idea stock was also up .58 per cent to Rs 8.74 apiece. The Union Cabinet is to meet later today to think about a moratorium on payment of spectrum dues by telecom firms.
Vodafone Idea wants to spend Rs 58,000 crore in adjusted gross income (AGR) dues. The Department of Telecommunications (DoT) has proposed that the payment be deferred for a period of 4 years.Legal observers stated if the government decides to provide a deferment of 4 years towards this payment, it wants to method the apex court. Officials stated so far the matter has not been discussed with the law ministry.
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Analysts say the telecom sector is now more or significantly less a duopoly sort of situation. “In Bharti Airtel stock, one can see continuous buying support near to Rs 670-690 levels. As far as Vodafone Idea stock is concerned, fundamentals are not clear,” Vishal Wagh, Head of Research, Bonanza Portfolio, told TheSpuzz Online. In the morning bargains, Bharti Airtel was the leading BSE Sensex gainer. In the previous one month, Bharti Airtel has rallied 13.19 per cent, as against a rise of 5.26 per cent in S&P BSE Sensex.
The telecom market has been on the radar for each investors and traders more than the previous week, as the central government has had several meetings with the Department of Telecommunications to enable debt-laden telecom corporations that are essential to the country’s development. The government is contemplating a wide variety of choices to financially assistance telecom corporations, such as a relief package that could include things like a one-year moratorium on spectrum payments due in April 2022, as effectively as monetizing telecom assets by way of InvIT and REIT instruments, and giving letters of comfort to telecom service providers, stated an analyst.
“Apart from that, the cabinet may make two important decisions in the telecom business that could change the industry’s fate. First and foremost, the Cabinet is likely to propose lowering the telecom licensing fee from 8% to 6%. Second, the Cabinet may amend the definition of the Average Gross Revenue (AGR) that the industry has long demanded, allowing them to avoid paying higher interest rates,” Likhita Chepa, Senior Research Analyst, CapitalBy means of Global Research, told TheSpuzz Online.
Chepa added that the investors are optimistic about it, offered the current rally in the telecom stocks. If any of the above points are advised by the cabinet, the telecom stocks might continue to rise for a further week. In S&P BSE Telecom pack, barring Tata Communications and Sterlite Technologies, all the stocks have been trading in a variety of .3-5 per cent. Vodafone Idea stock was also up .58 per cent to Rs 8.74 apiece.
(The stock suggestions in this story are by the respective study analysts and brokerage firms. TheSpuzz Online does not bear any duty for their investment tips. Capital markets investments are topic to guidelines and regulations. Please seek advice from your investment advisor just before investing.)