Bharti Tele back in focus on Ericsson deal

DALAL STREET SPIKES

Private telecom major Bharti Tele-Ventures was in the limelight, gaining over 2 per cent after issuing a big outsourcing contract to Ericsson. The stock hit the day's high of Rs 228.25, before closing at Rs 227.35, up 2.36 per cent compared with its previous close of Rs 222.10. More than 5.4 lakh shares were traded at the counter on BSE on Tuesday.

The stock however has remained range bound in the past few days. Analysts tracking the sector said, lack of any fresh impetus has kept investors at bay from telecom sector stocks.

The announcement by Bharti that they have dropped the proposal of a sponsored ADR issue has dampened the sentiment in the past few days. The stock has moved in a narrow range of Rs 219 to Rs 227 since mid-May. However, fund managers seem to be bullish on the counter from a medium-to-long term horizon.

"The company has reported strong financial results and it continues to witness strong subscription growth," said a fund manager with a domestic mutual fund.