Four telecom stocks rose by 2.17% to 4.78% at 13:31 IST on BSE on reports that the bidding intensity in the ongoing auction of 2G and 3G telecom spectrum has reduced drastically.
Meanwhile, the S&P BSE Sensex was down 2.69 points or 0.01% at 28,707.18
Telecom stocks staged intraday rebound amid volatility. Bharti Airtel gained 2.38% to Rs 376.65. The stock hit a high of Rs 379.20 and low of Rs 362.40 so far during the day.
Idea Cellular advanced 4.78% to Rs 161.20. The stock hit a high of Rs 162.05 and low of Rs 153.45 so far during the day.
Reliance Communications rose 2.17% to Rs 65.85. The stock hit a high of Rs 66.40 and low of Rs 64 so far during the day.
Tata Teleservices (Maharashtra) rose 2.41% at Rs 8.91. The stock hit a high of Rs 9.10 and a low of Rs 8.80 so far during the day.
The Auction of Spectrum in 2100 MHz, 1800 MHz, 900 MHz and 800 MHz Bands re-commenced yesterday, 10 March 2015 and six rounds of bidding were completed, according to a statement from the Ministry of Communications & Information Technology issued late yesterday, 10 March 2015.
On sixth day of bidding yesterday, 10 March 2015, over 83% of the spectrum was provisionally allocated to bidders at a value of approximately Rs 92200 crore. This is lower than the value of approximately Rs 94000 crore been committed by bidders in respect of provisionally won spectrum, by the end of fifth day of bidding on 9 March 2015.
Till now, 37 rounds of bidding has taken place. The bidding is taking place in all bands. On sixth day of bidding yesterday, 10 March 2015, there was activity in two new service areas in 1800 MHz band. There is a shift in activity from 2100 MHz and 900 MHz bands to 1800 MHz and 800 MHz bands.
Majority of service areas are going at a premium over reserve price. With 100% activity requirement and activity in new service areas, competitive bidding is expected to continue. There is still spectrum, which is yet to be sold. Bidding recommenced today, 11 March 2015.
As per reports, the department of telecommunications (DoT) won't be able to announce the final results of the auction because of a Supreme Court order barring it from doing so without its permission. A hearing in the Supreme Court in this regard is scheduled for 26 March 2015, reports added.
The government plans to sell 380.75 megahertz (MHz) of spectrum in three bands the premium 900 MHz band, 1800 MHz and 800 MHz, besides 5 Mhz in the 2100 Mhz band across 17 out of 22 telecom areas in the country. Validity of spectrum in this auction shall be 20 years.
Powered by Capital Market - Live News
