Bharti Airtel share value rose 2% to hit a new higher of Rs 684 apiece in intraday offers on Wednesday, ahead of the Cabinet meet scheduled later today. Similarly, Vodafone Idea shares surged 7.5 per cent to Rs 8.90 apiece. The Union Cabinet is anticipated to take up the division of telecommunications’ (DoT’s) proposal for providing a relief package to the telecom business at its meeting on Wednesday, sources told the TheSpuzz.
Also study: Telecom SOS: Cabinet may perhaps take contact on telecom relief package today
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Telecom stocks have been rallying for the last two days on expectations of the announcement of a relief package for the sector. Analysts say the relief package announcement will be a positive trigger for the whole telecom sector as nicely for some of the banking stocks such as IDFC First Bank, IndusInd Bank, and State Bank of India (SBI).
Bharti Airtel stock has gained 3.15 per cent so far this week, and Vodafone concept has rallied 22.5 per cent. “Vodafone Idea may witness big swings due to its high beta nature but the situation is still vulnerable for this counter as there is a good chance that this sector is heading towards duopoly therefore investors are advised to remain with the top two players. The ARPU has bottomed out and is likely to continue its upside momentum therefore the outlook for this sector is bullish where Reliance Industries and Bharti Airtel both are a good bet to play the growth of this sector,” Santosh Meena, Head of Research, Swastika Investmart, stated.
On the contrary, Reliance Industries Ltd (RIL) shares had been trading in the red. Motilal Oswal Financial Services has offered a ‘buy’ rating to RIL stock. “Despite the impact of the second COVID wave, RJio held its ground and was able to garner a healthy gross/net subscriber addition rate,” it stated.
Bharti Airtel’s capital raising may perhaps have a damaging influence in the brief term, given that it is unexpected as they have pointed out that their leverage and liquidity predicament is steady, but enterprise has strategically beaten JIO, their most significant rival, and has been in a position to attract a higher quantity of subscribers as compared to their rivals, stated an analyst. Bharti Airtel is also going aggressive in producing an ecosystem like Airtel Xstream fiber for their subscribers by providing profitable delivers for quicker web. “We believe that in the long run Bharti Airtel is going to do well and we recommend that investors should hold the stock for gains in the long term,” Ashis Biswqas, Head of Technical Research at CapitalVia Global Research, told TheSpuzz Online.