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

Economic Pulse

REUTERS SHOWCASE

NSEL Fraud

NSEL Fraud

Govt orders Financial Tech to absorb NSEL, liabilities  Full Article 

Stalemate

Stalemate

WTO prepares for crisis talks as India keeps veto on global deal.  Full Article 

Deal Talk

Deal Talk

Smartphone repair company B2X steps up expansion with Indian deal.  Full Article 

Earnings Season

Earnings Season

HDFC Bank eyes pickup in corporate credit.  Full Article 

JLR China

JLR China

JLR sees 20 percent growth in China sales this year - exec  Full Article 

Iron Ore Imports

Iron Ore Imports

JSW Steel to boost iron ore imports by up to 80 percent.  Full Article 

Pollution Levels

Pollution Levels

Delhi braces for worst air quality this Diwali week.  Full Article 

Remembering Margerie

Remembering Margerie

Total’s "Big Moustache"- bon vivant, deal-maker and risk-taker .  Full Article 

Reuters India Mobile

Reuters India Mobile

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