The shares of Vodafone Idea, Bharti Airtel, Reliance Industries, and Indus Towers were towering over other sectors on Tuesday in an otherwise subdued market.
At 12:15 pm, the stocks of Vodafone Idea (VIL) were changing hands at Rs 7.98, up nearly 11 percent. The stock has surged over 12 percent in the overall session to hit the intraday high of Rs 8.10.
In the last six sessions, VIL has gained nearly 35 percent. The rally started after it was reported that the government is working out a revival package for the financially distressed sector. The revival package, meant for the entire telecom sector, is expected to pull VIL out of its financial woes.
VIL is expected to pay AGR dues worth Rs 51,400 crore after India's apex court dismissed its plea to have the AGR dues recalculated due to alleged arithmetic errors. Kumar Mangalam Birla, the former chairman of Vodafone Idea, said if the company's cash crunch continues, it might have to shut its shop.
The stocks of Bharti Airtel (BAL), on the other hand, were up nearly four percent as it was trading at Rs 678.05. The stock had hit an intraday high of Rs 680.65 during the session.
The telco is lapping up attention after brokerage firm Macquarie gave the stock an 'outperform' call. The brokerage has given it a target price of Rs 867 per share - nearly 28 percent higher than its current market price. It has also added BAL to its marquee list - a list of the best bets in its portfolio.
Jefferies, an international brokerage firm said a churn among smartphone users could impact its mobile revenue for the financial year 2023 by 2-3 percent.
Jefferies is bullish on Reliance's JioPhone push as well. It sees a large addressable market of 540 million when the JioPhone releases. This could boost the company's revenue estimates of financial year 23 by up to 10 percent.
The shares of Reliance Industries (RIL), the parent company of Reliance Jio jumped a percent to hit an intraday high of Rs 2,452.95.
The shares of Indus Towers also jumped over six percent to trade at Rs 238.65. The stock has risen nearly eight percent today as it hit the intraday high of Rs 240.65.
First Published: IST