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Shares of telecom services providers such as Idea Cellular, Bharti Airtel and Reliance Communications gained ground in otherwise weak market on the National Stock Exchange (NSE).
Most of these have rallied between 10-20% in past four trading sessions compared with 1% fall in the benchmark CNX Nifty. Among the individual stocks, Idea Cellular has surged 4% to Rs 182, extending its 17% rally in past three days. The stock hit a 52-week high of Rs 184 on the NSE.
Most of these have rallied between 10-20% in past four trading sessions compared with 1% fall in the benchmark CNX Nifty. Among the individual stocks, Idea Cellular has surged 4% to Rs 182, extending its 17% rally in past three days. The stock hit a 52-week high of Rs 184 on the NSE.
The trading volumes on the counter more than doubled with a combined 16.91 million shares changed hands till 1519 hours on NSE and BSE.
Bharti Airtel was up 1% at Rs 400, while Reliance Communications trading marginal higher at Rs 70 compared with 1% or 119 points declined in the CNX Nifty.
The overall bidding in ongoing telecom auctions are significantly ahead of our estimates; outflows for operators being higher by 30-50% vs our initial estimates, said analysts at Barclays India.
That said Bharti Airtel, Idea and RCOM had seen a 12-40% correction (vs 9% growth in BSE Sensex) in a build up to the auctions. Over the last 2 days, all three stocks have seen a 6-13% up-move, as the bidding intensity is now reduced and limited to specific bands only. We continue to prefer Bharti Airtel (OW), added analysts in a client note.
