BSE Telecom hits new all-time high, shy of 1,800-level after Govt unveils major reforms; Vodafone Idea, Indus Towers rally 12-20%

BSE Telecom index has hit a new 52-week high of 1,796.77. However, the index was just shy of the 1,800-mark.

Sep 16, 2021 12:09 IST India Infoline News Service

Business growth, bull
Majority of telecom stocks were on a bull run during Thursday's trading session after the government announced major reforms for the sector. Vodafone Idea and the newly formed Indus Towers were in a buying frenzy as they welcomed the new measures that are expected to boost the industry. BSE Telecom index has hit a new 52-week high of 1,796.77. However, the index was just shy of the 1,800-mark.

At around 12.05 pm, the BSE Telecom index was trading at 1,777.07 up 30.59 points or 1.75%.

Vodafone Idea was the top gainer soaring by at least 19.5% so far today. However, at the current level, the stock advanced by nearly 18%.

On the index, Indus Towers followed by soaring more than 12%. OnMobile and Reliance Communications zoomed by nearly 6% and 4% respectively. MTNL climbed over 2%.

GTPL was marginally up.

On the other hand, HFCL was the top bear on the index tumbling 2.5% followed by Tejas Networks slipping 1.5%. Sterlite Tech and ITI dived nearly 1% each.

While Vindhya Telelinks, Tata Communications and Bharti Airtel were marginally down.

On Wednesday, the Union Cabinet approved a host of structural and process reforms in the Telecom sector. These measures are expected to protect and generate employment opportunities, promote healthy competition, protect the interests of consumers, infuse liquidity, encourage investment and reduce the regulatory burden on Telecom Service Providers (TSPs).

Nine structural reforms and Five procedural reforms plus relief measures for the Telecom Service Providers was approved.

The Cabinet had said that in the backdrop of the outstanding performance of the Telecom Sector in meeting COVID-19 challenges, with a huge surge in data consumption, online education, work from home, interpersonal connect through social media, virtual meetings etc., the Reform measures will further boost the proliferation and penetration of broadband and telecom connectivity. The Cabinet decision reinforces the Prime Minister’s vision of a robust Telecom Sector.

Further, as per the Cabinet with competition and customer choice, antyodaya for inclusive development and bringing the marginalized areas into the mainstream and universal broadband access to connect the unconnected. The package is also expected to boost 4G proliferation, infuse liquidity and create an enabling environment for investment in 5G networks.

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