Telecom Stocks Rally up to 19% After Israel-Iran Ceasefire; MTNL, Vodafone Idea Lead Gains

Telecom shares rallied in the stock market on June 25, 2025, driven by improved investor sentiment following the Israel-Iran ceasefire. MTNL share price led the gains, rising over 19%, while Vodafone Idea and Bharti Airtel climbed up to 3%.

Other Telecom Stocks Also in Green

Apart from the top performers, stocks like TTML, HFCL, Bharti Hexacom, and Indus Towers gained between 1% and 5% during the trading session. This broader rally reflects optimism in the telecom sector.

What's Driving the Telecom Rally?

The current uptrend is supported by:

• Positive global developments, like the Israel-Iran ceasefire.
• Better-than-expected Q4 FY25 results for several telecom companies.
• Improving ARPU (Average Revenue Per User) and rising data consumption.
• A belief that the industry is undergoing a structural transformation, attracting long-term investors.

One-Month Performance and Q4 Highlights

Stocks like Sterlite Tech, MTNL, ITI, and RailTel have seen gains of 12–38% over the past month.

Government’s Take on Competition

Telecom Minister Jyotiraditya Scindia emphasised the need for more competition in the telecom sector, warning against a duopoly. Former TRAI Chairman RS Sharma also highlighted the issue and stressed the need for broader broadband access.

Government Support Boosts Telecom Sector Growth

The Indian government has accelerated reforms in the telecom sector, creating a supportive environment for expansion and innovation. Key recent initiatives include:

• On November 15, 2024, Prime Minister Narendra Modi launched the Nyaya Maha Abhiyan, a 3-year mission with a project outlay of ₹24,000 crore (US$ 2.9 billion). Within just 3months, projects worth over ₹7,000 crore (US$ 845.9 million) have been approved, focusing on critical areas such as housing, water, roads, electricity, telecom, and multipurpose centers.
• In the Union Budget 2025–26, the Department of Telecommunications and IT received a significant allocation of ₹81,005.24 crore (US$ 9.27 billion), highlighting the government’s continued investment in digital infrastructure.
• The Competition Commission of India (CCI) has also cleared the acquisition of 100% shareholding in ATC Telecom Infrastructure Private Limited by Data Infrastructure Trust, along with other associated transactions, paving the way for consolidation and strengthening of telecom infrastructure in the country.

Read More: How to Buy NSE Unlisted Shares in India?

Conclusion

The telecom sector is gaining fresh investor attention amid global relief, strong quarterly results, and hopes of rising revenues. With strategic reforms, digital demand, and policy support, telecom stocks may continue to be a key focus for investors.

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