Telecom shares rebound; Idea, Bharti gain over 3%

Idea Cellular surged nearly 5% to Rs 179, while Bharti Airtel up 3.4% at Rs 389 on the Bombay Stock Exchange.

Shares of telecom services provider such as Idea Cellular and Bharti Airtel were trading higher by up to 5% on the bourses recovering most their Friday’s losses after analysts maintained an outperformer rating on both the stocks.

Idea Cellular has surged nearly 5% to Rs 179, while Bharti Airtel up 3.4% at Rs 389 on the Bombay Stock Exchange (BSE).

Hitesh Shah and Abhishek Gupta, analysts at IDFC Securities maintain outperformer on both Bharti and Idea with target prices of Rs 465 and Rs 220 respectively.

“We see the auction outcome as positive for Bharti Airtel and Vodafone as they have: a) successfully bid for 900MHz in all circles due for renewal, b) added 900MHz spectrum in a few circles at the cost of Reliance Communications, and c) significantly expanded their 3G footprint by seven circles each to 20 and 16 respectively,” analysts said in a report dated March 28, 2015.

Meanwhile, shares of Reliance Communications were up 2.3% at Rs 59.60 on the BSE.