Telecom shares rise on hopes of govt help

Bengaluru/Delhi, Nov 15

Telecom stocks rose today amid hopes that the government would step in to help the ailing sector, a day after two top mobile carriers warned their ability to operate and make profits would depend on relief from the country. 

On a conference call with analysts, Vodafone Idea CEO Ravinder Takkar said he saw no conflict in the government’s ability to provide relief to telecoms companies, sending shares up 20% in afternoon trade. 

“Given the stress on the sector, it gives the government additional ability to act in the interest of the overall economy,” he said. The S&P BSE Telecom index jumped as much as 8.6%, with shares of Vodafone rival Airtel rising over 8%. — Reuters