Vodafone Idea is the top gainer on the BSE, opening with a gain of 10% at Rs.7.51, rising over 23.5% to an intraday high at Rs.8.44. Bharti Airtel hit a 52-week today at Rs.485.75 and remains among the top five gainers.
We, as mobile phone users are ruing the news that tariff’s are now on their way up but the market, which has an eye on the profit margins of the companies is happy.
Yesterday, Bharti Airtel and Vodafone announced that they are hiking their tariffs between 15 to 50% over various packages, effective tomorrow, 3rd Dec.
Both going for same price hikes across all packages, which are also similar, both have additionally limited the number of minutes for outgoing calls, after which they will start charging six paise per minute.
This rate hike is expected to boost the revenue of telecom companies by around 20% and most brokerages have upgraded their call on the stocks, saying that the rate hikes were much steeper than expected.
Relaince Jio, the company which actually is the main disruptor, is also hiking rates by 40%, effective 6th Dec.