Telecom stocks surge on tariff hike buzz

Led by Idea Cellular, telecom stockssurged by up to 10.60 per cent on the BSE on Monday after Bharti airtel hikedmobile tariffs by up to 20 per cent for pre-paid users using certain packagesin several circles, triggering anticipation that other firms may follow suit.

Shares of Idea zoomed up by 10.60 per cent to touch a52-week high of Rs 94.35 on the BSE. Similarly, Reliance Communications jumpedby 6.73 per cent to touch an early high of Rs 99.85.

Bharti touched a one-year high of Rs 424.95, up 3.40 percent from its last closing price.

"The move is extremely positive for the sector andBharti's tariff hike could be a sign of revival in industry tariffs goingforward. This will also boost the operators' earnings," Ashika Stock BrokersResearch Head Paras Bothra said.

Following the hike, users of airtel's 'Advantage' and'Freedom' pre-paid tariff packages, which are based on per minute billing, willhave to pay 60 paise per minute for local and STD mobile-to-mobile calls,airtel had said. Earlier, the calling rate under these packages was 50 paiseper minute.

India isthe world's second-biggest mobile market after China. Bharti, the fifth-largestmobile operator globally by subscribers, operates in 19 countries in South Asiaand Africa.