Here is the Telecom shares performance ahead of the Cabinet Meeting

On 5 September 2021, Telecom stocks jumped prior to the Cabinet meeting scheduled for later that day to consider monetary relief to embattled enterprises.

On the other hand, Vodafone Idea stock went up by 0.58% and reached Rs. 8.74 apiece. Reliance Communications gained 1.6%, while MTNL climbed by about 2%. Moreover, Bharti Airtel share price reached an all-time high of Rs. 719.60, thereby rising more than 3% on the BSE.

Let’s Take a Closer Look

Over the past week, the telecom industry was under observation by both traders and investors. In fact, the Central Government held several meetings with the Department of Telecommunications (DoT) regarding financial assistance to debt-laden companies, which also plays a key role in India’s development.

Therefore, the Government is considering numerous options to extend monetary help to telecom companies, which includes the following:

• A relief package providing a 1-year moratorium on their spectrum payment that is due in April 2022.
• This relief package may comprise monetising assets of telecom companies by way of REIT and InVIT instruments, alongside offering letters of comfort to the providers of telecom service.

Furthermore, the Cabinet could make two critical decisions regarding the telecom business, which may change the fate of this industry. These are:

1. It may propose reducing the licensing fee to 6% from 8%.
2. The Cabinet may consider amending the Average Gross Revenue’s (AGR) definition, which the industry has been demanding for long, thereby allowing them to not pay higher interests.

Additionally, Vodafone Idea is due to pay Rs. 58,000 crores in AGR. So, the DoT has suggested that this payment be deferred for a tenure of 4 years.  On the same day, Bharti Airtel emerged at the top of BSE Sensex. The stock rallied by 13.19%, with a 5.26% increase in the S&P BSE Sensex.

Also Read: Best 5G Stocks To Invest

Wrapping Up

Given this rally in India’s telecom stock, investors are now fairly optimistic. All these stocks, barring that of Sterlite Technologies and Tata Communications, traded within a range of 0.3 & to 5%. In fact, these shares may continue their climb for the upcoming week as well if the Cabinet recommends any of the above-mentioned points.

Frequently Asked Questions

1. Which are the telecom shares in India?

As of now, the top telecom shares in India include Bharti Infratel Ltd, Bharti Airtel Ltd., Vodafone Idea Ltd., ITI Ltd., Tata Communications Ltd., HFCL Ltd., Tejas Networks Ltd., GTL Infrastructure Ltd., MTNL, and Tata Teleservices (Maharashtra) Ltd.

2. Is Bharti Airtel a public company?

Yes, Bharti Airtel was established in 1995 as a public limited company.

3. How to invest in Voda Idea shares?

To invest in shares, new investors can open a DEMAT account with Angel One. Moreover, if you are already registered with us, you can buy shares on our Angel One mobile app.