Extending the previous session's rally, telecom stocks led by Bharti Airtel surged by up to 5% on the BSE today after the government unveiled a new policy that will help users avail free roaming services across the country and inter-circle mobile number portability.
Shares of the country's largest private telecom company Bharti Airtel surged by 4.66% to a high of Rs 380.20 on the BSE.
Similarly, stocks like Idea Cellular, which rose by 4.32%, and Reliance Communications, which jumped by 3.44%, attracted buyers' interest.
MTNL, too, surged by 3.53% and Tata Communications' stock went up by 1.87%.
Commenting on the policy, Emkay Global Research said in a note, "The policy indicates a long-term vision and objectives, but the ongoing spectrum-related issues remain unresolved. We maintain our positive view on the sector. Draft NTP-2011 does not indicate any kind of significant negative for incumbents."
"However, the key issues related to the spectrum re-farming and a one-time fee for excess spectrum remained unanswered," it said.
The government yesterday unveiled a new policy that will help users avail free roaming services across the country and inter-circle mobile number portability.
Another boost for the industry are provisions in the draft bill for recognition of telecom as an infrastructure sector, analysts said.
