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Bharti Airtel up 12% from day's low on buzz of govt relief for telcos

According to a CNBC-TV 18 report, the committee of secretaries is mulling setting a minimum price for mobile calls and data.

SI Reporter  |  Mumbai 

SoftBank already has a close relation with the Mittals,  the founders of Bharti

Shares of moved higher by 9 per cent to Rs 395, bouncing back 12 per cent from its early morning low of Rs 354, on the BSE on Friday. The counter saw heavy trading volumes after reports said the government was mulling sops to revive the telecom sector.

The stock of the telecom services provider was trading close to its 52-week high of Rs 397 touched on October 14, 2019 in the intra-day deal.

According to a report by business channel CNBC-TV 18, Committee of Secretaries (CoS) was mulling setting a minimum price for mobile calls and data.

"The CoS has approached the Department of Telecom to suggest quantum of minimum charge with least impact on consumers," the report added.

Meanwhile, brokerage firms maintain ‘buy’ rating on after the company reported a strong operational performance in July-September quarter (Q2FY20). However, the company reported a pre-tax loss of Rs 31,334 crore for Q2FY20, after providing for outstanding payments to the central government on account of the Supreme Court judgment on adjusted gross revenues (AGR).

While expects relief from the government and was considering a review petition, notes to account included a statement on possible funding challenges undermining the Group's ability to continue as a going concern.

Analysts at Edelweiss Securities, however, believe the AGR order impacts Vodafone Idea the most, impairing its ability to invest in network.

"This will provide Bharti an opportunity to boost market share, driving profitability. Despite regulatory headwinds, execution and ability to raise funds will help Bharti sail through the current turmoil," the brokerage firm said in a result update.

At 11:19 am, Bharti Airtel was the top gainer among S&P BSE Sensex stocks, up 6 per cent at Rs 386 on the BSE. In comparison, the benchmark index was up 0.51 per cent at 40,493 points. The trading volumes on the counter jumped nearly four-fold with a combined 28 million shares changed hands on the NSE and BSE so far.

First Published: Fri, November 15 2019. 11:24 IST