Bharti Airtel share rose 5 percent in early trade after MSCI Global Standard Indexes said it would raise the weightage of the telecom firm in the February 2021 quarterly review.
The stock touched an intraday high of Rs 610, rising 5.14% against previous close of Rs 580.20
Market cap of the firm rose to Rs 3.27 lakh crore on BSE.
The stock has gained 10.73% in the last 5 days.
Bharti Airtel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages
However, the share has gained 28.04% in one year and risen 17.59% since the beginning of this year.
On January 12, National Securities Depository Limited (NSDL), had updated the foreign investment limit for Bharti Airtel from 49 percent to 100 percent.
After which MSCI on January 14 said the proforma foreign ownership limit (FOL) and upward movement of the adjustment factor due to foreign room would be implemented as part of the upcoming February 2021 Quarterly Index Review (QIR).
Meanwhile, brokerage CLSA has maintained its buy recommendation on the stock.
CLSA has given a Buy call on Bharti Airtel with a target price of Rs 730. Bharti Airtel remains CLSA's top pick in the telecom sector. "In 2020, despite Reliance Jio gaining market share to 37% (increase by 4 ppt), Airtel gained 2 ppt market share to 32% and its ARPU was up 27%. 35% growth in Airtel's data subscribers and tariff hikes will lead to continued growth. CLSA forecast a consolidated EBITDA CAGR of 16% over FY21-23E and the stock is inexpensive at a 10% discount to its five-year average EV/EBITDA," the brokerage said.
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