Bharti Airtel gains on tariff hike hopes
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.
- Tweet this
- Share this
- Digg this
- Govt considers ban on e-cigarettes, sale of single smokes
- India's fiscal deficit in H1 almost 83 pct of full-year target
- Islamic State fighters kill 220 Iraqis from tribe that opposed them
- Muslim men over 50 pray at Jerusalem's Aqsa mosque amid tight security
- Europe won't recognise vote in eastern Ukraine, Merkel tells Putin
Shares Hit Record
The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro. Full Article
China's shadow banking sector growing rapidly, third largest in world - FSB. Full Article