BSE Telecom Index surges 3.5%, Idea Cellular up 9%

BSE Telecom Index was in focus in the early morning trade as the index gained over 3 per cent at 1,222. The index has been in the buoyant mood as a result of the rising consolidation chorus amongst the existing telecom players.

Idea Cellular, the country's third largest telecom player with pan-India presence surged close to 9 per cent in trade to hit an intra-day high of Rs 84.45 on the NSE. The stock has gained around 18 per cent in the previous five trading sessions following the expected merger between Vodafone and Idea Cellular in order to counter all the threats from Reliance Jio.

The industry has been buzzing with all the news development in the last month over talk of massive consolidation taking place in the telecom space in the country. The arrival of deep pocketed Reliance Jio in the sector has led to a great deal of uncertainty relating to the health of existing companies, which are bleeding financially by competing with Jio.

It has been a double whammy for the incumbents weighed down by high leverage, low pricing and cut throat competition in the industry.

Top Gainers: -

Idea Cellular- CMP- Rs 84.25 (up 8.4%)
TTML- CMP- Rs 6.25 (up 6.25%)
RCom- CMP- Rs 32.45 (up 5.02%)
Bharti Airtel- CMP- Rs 338.20 (up 4.56%)
Tata Communication- CMP- Rs 739.85 (up 2.95%)