Bharti Airtel gains on tariff hike hopes

Mon Nov 19, 2012 2:53pm IST

An employee checks a customers' feedback book next to a Bharti Airtel logo inside its shop in Kolkata May 2, 2012. REUTERS/Rupak De Chowdhuri/Files

An employee checks a customers' feedback book next to a Bharti Airtel logo inside its shop in Kolkata May 2, 2012.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Stocks

   

Reuters Market Eye - Shares in Bharti Airtel(BRTI.NS) rise 2.3 percent, heading for their fifth consecutive session of gains, as more brokerages upgrade the stock after last week's auction of 2G spectrum fetched lower prices than the government had targeted.

Bharti shares surged 9.3 percent last week, the biggest weekly gain since late September.

Credit Suisse upgraded Bharti to 'outperform' from 'underperform', and raised its target price to 355 rupees from 225 rupees, citing greater clarity on the regulatory front and reduced competitiveness in the domestic sector.

The investment banks add operators could also be testing markets for tariff hikes by reducing discounts.

"While the recent rally in stocks has been led by easing regulatory concerns, we believe the next leg will be driven by tariff increases," Credit Suisse said in a note dated on Monday.

Goldman Sachs upgraded the stock as well, to 'buy' from 'neutral', also citing reduced regulatory risk and potential for tariff hikes, according to a note dated on Friday.

"We see room for potential tariff hikes in coming months as operators focus on reducing losses and pass the burden of higher spectrum on to consumers," Goldman wrote.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Rising Inflation

Rising Inflation

Food prices push inflation up, limit RBI's room to act.  Full Article 

New Direction

New Direction

New CEO Nadella pushes data culture at Microsoft.  Full Article 

Infosys Results

Infosys Results

Infosys says staff exodus a worry after Q4 profits beat estimates  Full Article 

Deal Talk

Deal Talk

Diageo in $1.9 billion bid to raise stake in United Spirits.  Full Article 

Reuters Poll

Reuters Poll

Domestic fund managers start to bet on own economy  Full Article 

S&P on India

S&P on India

India's policy reforms to affect sovereign ratings - S&P.  Full Article 

Toyota's Performance

Toyota's Performance

After two bumper years, Toyota braces for shift to slower growth.  Full Article 

Third Gender

Third Gender

Supreme Court recognises transgenders as third gender in landmark ruling.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage