ITI hits ceiling on BSNL buzz

DALAL STREET SPIKES

Indian Telephone Industries (ITI) hit the 20 per cent upper circuit to close at Rs 61.05 on the BSE. The spurt in the stock price was on the news that Bharat Sanchar Nigam Ltd (BSNL) may put a clause in its 60 million GSM lines project stipulating that 25 per cent of equipment requirements would be reserved for Indian public sector units.

This implies that Indian PSU's tendering for the contract may bag an order worth 15 million GSM lines. The total project is worth $500 crore. ITI is the only PSU which is in the business of manufacturing GSM equipments and is likely to bag the contract by mere tendering and hence the spurt in stock price.