Shares of BSE Telecom index erased yesterday's losses and are trading higher on the BSE. The index rallied in today’s trade after media reports said that the Committee of Secretaries, headed by Cabinet Secretary Rajiv Gauba, has been asked to evaluate financial stress faced by telecom operators and suggest measures to alleviate the stress.
The government has constituted a committee of secretaries to explore a financial bailout package for the telecom sector by lowering spectrum charges as well as ending the era of free mobile phone calls and cheap data as companies look at the government for avoiding payment of thousands of crores of rupees in overdue statutory levies, the media reports added.
According to a media statement, the Committee of Secretaries, headed by Cabinet Secretary Rajiv Gauba, has been asked to examine “all aspects” of “financial stress” faced by service providers such as Bharti Airtel and Vodafone Idea and suggest measures to mitigate them.
Shares of ITI soared 11.5% on the BSE and among top contributor to the index gain. The stock has extended gains for the third consecutive trading session.
Optiemus Infracom, MTNL, Bharti Airtel and Tejas Network are among top gainers on the Telecom index. On the flip side, Infratel slipped 4% in today’s trade.
Meanwhile, the stock market extended rally in the afternoon session, with the Sensex is up over 265 points and the Nifty50 above 11,850-mark.
ITC, GAIL, Grasim and SBI are among top gainers, while losers include Infratel, UPL and Dr. Reddy’s in the afternoon trade.
No comments