BSE Telecom trades near record highs, index tops 1%; Tejas Networks, RCom hit 5% upper circuit; Airtel, Vodafone Idea rally

On the index, Tejas Networks, Optiemus Infracom and Reliance Communications were top gainers as they were locked on a 5% upper circuit.

Sep 09, 2021 11:09 IST India Infoline News Service

Telecom stocks extended their gaining spree even on Thursday although the Union Cabinet could not give clarity on the relief package for this financially stressed sector. As per media reports, the relief package decision could not take place pending a legal opinion, however, the matter is expected to be discussed in the next meeting most likely.

At around 11.24 AM, BSE Telecom was trading at 1,645.01 up 1%. The index was near the intraday high of 1,647.75.

On the index, Tejas Networks, Optiemus Infracom and Reliance Communications were top gainers as they were locked on a 5% upper circuit.

Further, OnMobile Global surged 2.1% followed by Vodafone Idea, Indus Tower, Bharti Airtel and Vindhya Telelinks soared more than 1% each.

MTNL was marginally up.

On the contrary, GTL Infra was the top bear diving nearly 5% followed by Sterlite Tech slipping 1.3%. HFCL dipped 0.9%, while Tata Communications shed 0.5%. ITI was flat but in red.

Earlier on Wednesday, the Telecom index had hit a new 52-week high of 1666.52.

As per a Times of India report, a package for the ailing telecom industry could not be cleared by the Union Cabinet on Wednesday, pending a legal opinion,  sources said, adding that the matter is likely to be taken up soon, possibly in the next meeting.

The sources stated that the package relief matter was tabled at the Cabinet meeting on Wednesday morning, following hectic parleys between various wings of the government to cobble up a revival package given the poor health of the sector, especially Vodafone Idea,  which appears to be on the brink of a collapse. That said, the matter needed a legal opinion.

On Wednesday, the Cabinet made a host of approvals such as MoU between ICAI and CAAR, while another MoU between the Joint Stock Company Rosgeologia, Russia and the Geological Survey of India (GSI). Also, the PLI scheme for textile, increase in MSP for rabi crops and recruitment agreement between India and Portugal - were some of the key areas that received green signals. 

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