Cabinet removes need for huge bank guarantee against previously bought spectrum; Vodafone Idea locked in 10% upper circuit

Telecom stocks are successful absorption successful Monday's league (November 26) commercialized arsenic the Union furniture gave a go-ahead to the connection for removing slope warrant (BG) request for spectrum purchased pre-2022.

Amid the development, telecom stocks saw traction and mostly traded successful the green. At the past number astatine astir 9:29 am, shares of beleaguered telecom institution Vodafone Idea were locked successful 10 per cent precocious circuit astatine Rs 7.67 per share, portion the different work supplier Bharti Airtel traded with mild gains of 0.4 per cent astatine Rs 1,586 per stock connected the BSE.

Bharti Airtel successful the past 1 twelvemonth has zoomed 63 per cent, portion Vodafone Idea has delivered a antagonistic instrumentality of 43 per cent.

Cabinet determination connected slope warrant for spectrum acquisition pre-2022

In a bid to supply alleviation to the ailing companies successful the sector, the Cabinet has done distant with the request to deposit immense slope warrant successful lieu of the antecedently purchased spectrum. As per sources, telecom companies beryllium a combined full of Rs 30,000 crore slope guarantee.

Reportedly, Vodafone Idea owes Rs 24,600 crore successful slope guarantee, portion the slope warrant owed for Reliance Jio and Bharti Airtel is to the tune of Rs 4,000 and Rs 3,000 crore, respectively.

Also Read: Anil Singhvi Market Strategy November 26: Important levels to way successful Nifty50, Nifty Bank today

Anil Singhvi's presumption connected telecom stocks

Zee Business Managing Editor deems the quality to beryllium bully for telecom players and the quality volition augur good crossed players. Further, helium said that the quality volition beryllium life-saving for Vodafone Idea.

The quality volition besides beryllium affirmative for different players including Indus Towers, Bharti Hexacom and Bharti Airtel.

The adept suggests to bargain Vodafone Idea Futures for targets of Rs 7.25, Rs 7.4 and Rs 7.5, keeping stoploss of Rs 6.65. Similarly helium has adviced to buy Bharti Airtel Futures for a people of Rs 1,605 and Rs 1,620-with a halt nonaccomplishment of Rs 1,562 per share.