Vodafone Idea has received positive feedback from Nuvama Institutional Equities, Dixon Technologies and ICICI Securities, indicating a potential path to survival for the struggling telecom company. While Bharti Airtel rolled out a tariff hike on Friday, Vodafone Idea is expected to witness inflows of over $278 million and Suzlon Energy saw a significant increase in share price. Market experts discuss the potential opportunities in the telecom sector on Business Today TV's daily market show, with Vodafone Idea likely to opt for a payment plan to ease financial burden.
The Indian stock market saw a promising week with a 2.36% climb and a historic high for the BSE Sensex. Reliance Industries, TCS, HDFC Bank, ICICI Bank, Bharti Airtel, SBI, Infosys, Hindustan Unilever, and ITC were among the top gainers. The sole laggard was LIC. The surge added a total of Rs 2,89,699.42 crore to the market cap of the top 10 companies, with Reliance Industries remaining the most valued company.
Bharti Airtel, one of India's leading mobile network operators, announced a significant 10-21% increase in mobile tariffs. This move, effective immediately, is expected to have a major impact on the stock market and investment tracking in the telecom sector. Bharti Airtel's decision comes as competitors such as Vodafone Idea and Reliance Jio have also hiked their tariffs in recent months. This latest development highlights the changing landscape of the Indian telecom industry and the ongoing battle for dominance in the highly competitive market.
Bharti Airtel has announced a significant hike in mobile tariffs by 11% to 21%, effective from July 3. This comes after Reliance Jio's announcement of a 12% to 27% price increase, the first in two and a half years. In order to ensure a financially healthy business model for telcos in India, Airtel has maintained that the mobile ARPU should be at least Rs 300. This move is expected to result in a modest price increase for consumers, with Airtel revising its unlimited voice plan prices from Rs 179 to Rs 199 and from Rs 1,799 to Rs 1,999.
Vodafone is expected to pare its 18% stake in Indus Towers in a block deal, with a floor price range of Rs 310-341 per share. Brokers Bank of America, Morgan Stanley, and BNP Paribas are expected to be involved in the deal. The transaction is seen as a positive move for Vodafone, which may use the proceeds to pay off debt and potentially invest in the company. There is also speculation that Bharti Airtel may increase its stake in the entity, currently at 47.95%, to 50%. Stay updated on the latest business news and stock market updates through Zee Business.
Bharti Airtel, one of India's leading telecom companies, has seen a 14% increase in stock this month as a result of market share consolidation and recent tariff hikes. With a strong presence in both India and Africa, the company is expected to see a boost in margins and profits due to lower capex. Along with its traditional services, Airtel has also diversified into new ventures such as Payments Bank, AdTech, and data centres.
Bharti Hexacom, a subsidiary of Bharti Airtel, debuted on the stock market with a 32.49% increase in share prices on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). This comes after the company's successful IPO which was oversubscribed almost 30 times. With the telecom sector showing positive growth, experts suggest holding on to shares for long-term investors with a stop loss at Rs 640. This is the first IPO for the company in the current fiscal year, with the previous IPO for the Bharti group being Bharti Infratel in 2012.
The Indian stock markets, Nifty 50 and Sensex, are likely to start the day in red, as indicated by GIFT Nifty futures. Zee Business Managing Editor Anil Singhvi offers his views on the current market situation and provides insights on Nifty50 and Nifty Bank levels for April 2. Some major companies, such as Hero MotoCorp and Ashok Leyland, have already released their monthly sales numbers and others like Maruti Suzuki, Tata Motors, and Eicher Motors are expected to do so today. Telecom companies like Reliance Industries, Vodafone Idea, and Bharti Airtel will also be in the spotlight following the release of subscriber data by TRAI for January.