Telecom stocks soar
Telecom index on the Bombay Stock Exchange (BSE) soared as much as 9.5% in intra-day deals, as investors remained optimistic on the sector after Vodafone reportedly confirmed that it is in merger talks with Idea Cellular. CLICK HERE FOR THE STORY
Idea Cellular gained 29% to Rs 100 in intra-day trade. The share price of the company has risen 44% since January 18. On the other hand, Bharti Airtel, RCom, TTML also gained 12.26%, 9.87% and 7.13% respectively.
Global brokerage house CLSA believes a potential merger between Vodafone India with Idea Cellular would change the industry order. The combined entity would have 43% revenue share in the market by FY19 against 33% of Bharti Airtel and 13% for Reliance Jio. The merged entity will also have the highest spectrum holding across the industry. The surprise postponement of results by telecom operator Idea Cellular also hints at the merger. CLICK HERE FOR THE STORY
Idea Cellular is currently trading at Rs 98, up 26% The stock opened at Rs 79.9 and has touched a high and low of Rs 100 and Rs 79.5 respectively.