As Vodafone clears the air with its Idea, share-holders cheer

Stocks of telecom players are likely to remain in focus when the markets open for trading on Tuesday, January 31, 2017. After the huge run up in the stock prices of telecom players on the back of Idea-Vodafone merger talk confirmation, the euphoria is likely to continue for some more time.

Post confirmation of the merger news by Vodafone and Idea Cellular, shares of Idea Cellular spiked up more than 29 per cent in intra-day trade before closing the day with gains of close to 26 per cent at Rs 98.

Exploratory talks between the two market leaders are expected to augur well for the sector especially for Idea Cellular which is hugely going to benefit by merging its operations with the second rank player in the country helping it fight Reliance Jio formidably and at the same time become a force to recon with in the industry.

Bharti Airtel stock too saw a sharp rise in its share price. At one point of time, the stock was trading with gains in excess of 13 per cent. However, it came down from its highs to close with gains of 7 per cent at Rs 346.40.

Shareholders in Idea and Bharti Airtel should stay invested in the stocks at this point of time given the positive news surrounding the industry and growing consolidation chorus which is going to benefit both.