Shares of Bharti Airtel climbed over 2% in intraday trade on Monday after the telecom major hiked its mandatory minimum recharge for pre-paid customers to Rs 45 from Rs 35, with immediate effect.
Boosted by tariff hike, shares of Bharti Airtel touched the intraday high of Rs 464.75, rising 2.08% against its previous closing of Rs 455.30 on BSE. 1.8 lakh and 77 lakh shares changed hands on the BSE and NSE counters, respectively. The rise in share price was in line with the 'Telecom' sector, that has risen 1.41% today.
Bharti Airtel shares trade higher than 5, 20, 50, 100 and 200-day moving averages. The stock price of Bharti Airtel has risen 1.4% in a week, 4.23% in one month and over 60% year-to-date.
"It will be mandatory to recharge with a voucher of Rs 45 or above every 28 days to avail services," Airtel said in a press release on Sunday. This means every Airtel prepaid user will have to pay a minimum of Rs 10 more every month to stay on its network. This hike in tariffs will affect 95% of its customer base of around 30 crore.
Recently, the company had raised tariffs as much as 40%. These hike-in tariffs comes at a time when Airtel is faced with the dual challenges of humongous losses and outstanding payments.
Meanwhile, shares of rival Vodafone were trading 8.5% higher to hit day's high of Rs 6.33, against its previous closing price of Rs 5.83 on BSE.Share Market Live: Sensex falls 100 points, Nifty below 12,230; YES Bank, SBI, BPCL drop 1%