Shares of Bharti Airtel, Vodafone Idea and Reliance Industries rose up to 7% today, after the Union Cabinet cleared a relief package for the telecom sector. Bharti Airtel share hit all-time high of Rs 734.95, rising 5.89% against previous close of Rs 694.10.
Airtel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The share has gained 49.89% in one year and risen 42.94% since the beginning of this year. Market cap of the telco crossed Rs 4 lakh crore for the first time on an intra day basis.
Total 10.64 lakh shares changed hands amoutning to turnover of Rs 76.72 crore on BSE. Later, the share closed 4.53% higher at Rs 725.55.
On the other hand, share of troubled telco Vodafone Idea gained 7.01% intra day to Rs 9.30 against previous close of Rs 8.69 on BSE. Vodafone Idea share stands higher than 5 day, 20 day, 50 day and 100 day moving averages but lower than 200 day moving averages. Later, the stock closed 2.76% higher at Rs 8.93.
Share of Reliance Industries (parent of Reliance Jio) rose over 1% to Rs 2,395 against previous close of Rs 2,368 on BSE. It closed 0.45% higher at Rs 2,378 on BSE.
The government has announced a four-year moratorium on the AGR dues of telcos. Telcos will also be allowed to surrender spectrums that have not been used. Telcos will be given an option of converting a part of their dues into government's equity now and some part after four years.
Other important proposals include a decrease in bank guarantees and redefining AGR to exclude 'non-telecom' items, again prospectively.
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