Vodafone Idea, Bharti Airtel shares surge up to 27% despite posting huge losses in September quarter
Shares of Vodafone Idea on Friday surged over 10 percent despite the company posted a tremendous loss of Rs 50,921 crore - highest ever loss posted by any Indian corporate - for September quarter
Vodafone Idea shares surged 31.86 percent to Rs 3.89 in day trade on BSE
Later, the scrip shed some of the gains to close up by 24.75 percent at Rs 3.68
Bharti Airtel jumped gained 9.74 percent to touch an intra-day high of Rs 398 apiece
New Delhi: Telecom stocks on Friday surged up to 27 percent after reports suggested that the telecom department may fix a floor price for data and voice tariffs, notwithstanding huge losses reported by two leading players for the July-September quarter.
Vodafone Idea shares surged 31.86 percent to Rs 3.89 in day trade on BSE. Later, the scrip shed some of the gains to close up by 24.75 percent at Rs 3.68.
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On the National Stock Exchange, the stock soared by 32.2 percent to Rs 3.90. It settled at Rs 3.75, up 27.12 percent. On the traded volume front, over 82 crore shares of Vodafone Idea were traded on NSE and 12.47 crore on BSE.
Bharti Airtel jumped gained 9.74 percent to touch an intra-day high of Rs 398 apiece. After shedding some gains, the stock settled 8.42 percent up at Rs 393.20.
During the day, the scrip rallied 9.93 percent to Rs 398.50 on the NSE. It closed at Rs 396, up 9.24 percent. In terms of traded volume, over 5 crore shares of Bharti Airtel were traded on the NSE and 23.79 lakh on the BSE. Moreover, the company saw a jump of Rs 15,000 crore in its market-capitalisation to Rs 2.01 lakh crore.
"Telecom stocks also zoomed higher after reports that Department of Telecom (DoT) might set a floor price on data and voice tariffs," Paras Bothra, President of Equity Research, Ashika Stock Broking commented.
Telecom regulator Trai, however, clarified that the telecom department has not yet approached it for its views on floor price for tariffs. "We have not received anything," Trai chief RS Sharma said when asked if the Department of Telecom (DoT) has approached Telecom Regulatory Authority of India (Trai) for its opinion on floor price or minimum tariff fixation for mobile services.
Telecom operator Vodafone Idea on Thursday reported a consolidated loss of Rs 50,921 crore - the highest ever loss posted by any Indian corporate - for the second quarter ended 30 September, on account of liability arising out of the Supreme Court order in the adjusted gross revenue case.
Bharti Airtel posted a staggering Rs 23,045 crore net loss for the July-September quarter due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues.
However, analysts said that Bharti Airtel has performed better than expected amid a challenging environment.
Amidst uncertainties with respect to the government's stance on AGR-related liabilities, Bharti Airtel is relatively well placed considering Rs 188 billion cash on books and its ability to raise requisite capital, it added.
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