Telecom stocks reacted positively to the government's move to allow FDI of up to 100 per cent in the sector and were trading up 4 per cent in the morning trade on Wednesday.
Shares of Idea Cellular rose by 3.84 per cent to Rs 163.50 - its record high on the BSE, while Reliance Communications jumped 3.66 per cent to touch its 52-week high of Rs 151.25. Bharti Airtel was also up 1.94 per cent.
The government on Tuiesday allowed 100 per cent FDI in the telecom sector, meeting a key demand of the fund-starved industry. Earlier, FDI limit in the sector was 74 per cent where 49 per cent was done through automatic route and rest required nod from Foreign Investment Promotion Board.
The idea behind the decision to increase FDI limit in telecom sector is to help the industry get fresh funds to lower financial burden.
The move also brings relief for foreign partners in telecom companies as they can have complete ownership of the business.
With PTI inputs