Shares of Vodafone Idea, Bharti Airtel and Reliance Industries rose up to 14.54% in an otherwise subdued market today amid reports that government was preparing a relief package for the telecom sector.
Vodafone Idea share touched an intraday high of Rs 8.27, rising 14.54% against its previous close of Rs 7.22 on BSE.
The stock opened 2.77% higher at Rs 7.42. The telecom share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages.
The stock has fallen 33% in one year and lost 22.46% since the beginning of this year.
However, in a week, the share has risen 35%.
The spectacular rally in the share started amid reports that the government was working out a revival package for the financially distressed sector. The package is expected to provide relief to the debt-laden telco.
The telco is likely to pay AGR dues worth Rs 51,400 crore after Supreme Court rejected its plea for their recalculation due to alleged arithmetic errors. On the other hand, Kumar Mangalam Birla, the former chairman of Vodafone Idea, has said if the company's cash crunch continues, it might have to shut shop in India. Stock of leading telecom player Bharti Airtel too rallied to a record high in today's trade. Airtel share touched an all-time high of Rs 680.65, rising 4% against previous close of Rs 654.50 on BSE.
The large cap share has gained after 3 days of consecutive fall. Bharti Airtel stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 30% in one year and risen 31% since the beginning of this year. Meanwhile, Macquarie has assigned an 'outperform' call for the Sunil Mittal-led telco. The brokerage has added the stock to its marquee list- a list of best bets in the portfolio and given a target price of Rs 867 per share, nearly 28% higher than its current market price.
Reliance Industries share, parent of Reliance Jio, rose 1.40% to an intra day high of Rs 2,458 against previous close of Rs 2,424.55 on BSE.
The reports of likely relief package come after chairman of Aditya Birla Group (ABG) Kumar Mangalam Birla and Vodafone Global head Nick Read met with Union minister of telecom Ashwini Vaishnav last week.
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