New Delhi: Shares of telecom companies on Monday surged on the back of new tariff plans announced by the operators to be effective from 3 December onwards.
Shares of Vodafone Idea closed at Rs 7.79 apiece, up 14.06 percent, on the BSE. During the day, the stock hit a high of Rs 8.49, a jump of over 24 percent. The stock appreciated 13.87 percent to Rs 7.80 on the NSE. Intra-day, the stock price varied between Rs 7.50 to Rs 8.80, zooming over 28 percent.
Over 146 crore shares of Vodafone Idea were traded on the NSE and more than 11 crore on the BSE.
Bharti Airtel rose 3.67 percent to settle at Rs 458.55 on the BSE. The stock gained 9.82 percent in early trade to hit 52-week high at Rs 485.75.
On the NSE, the stock jumped 9.75 percent during the day to Rs 485.60.
Later, it settled 4.12 percent up at Rs 460.70.
In terms of volume, over 5 crore shares of Bharti Airtel were traded on the NSE. Meanwhile, the BSE saw an exchange of over 20 lakh shares.
Analysts said the renewed interest in telecom shares is largely driven by the hike in tariff.
"Telecom companies announced tariff hike in the range of 15 percent and 40 percent across different plans which is expected will partially assuage telecos stress and will help in improving ARPUs. Further, a favourable judicial outcome would give the Government room to reduce AGR levies and lessen industry burden," Paras Bothra, President of Equity Research, Ashika Stock Broking said.
Mobile calls and internet charges will go up by up to 50 percent in the country, as private sector players - Bharti Airtel, Vodafone Idea and Reliance Jio - on Sunday announced their plans to raise tariffs from 3 December onwards.
Reliance Jio on Sunday said it will launch new unlimited plans from 6 December, which will raise its voice and data tariff by up to 40 percent.
Unlisted Reliance Jio Infocomm is part of Reliance Industries, whose shares gained 2.28 percent to settle at Rs 1,586.30 on the BSE. On the NSE, the scrip went up 2.30 percent to close at Rs 1,586.90.
The stock hit 52-week high on stock exchanges during the day.
The companies together added over Rs 33,000 crore in market-capitalisation. Reliance Industries' having a share of over Rs 22,000 crore, Bharti Airtel over Rs 8,300 crore and Vodafone Idea Rs 2,700 crore.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)
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Updated Date: Dec 02, 2019 17:47:56 IST