MARKET EYE-India's Bharti Airtel gain on tariff hike hopes

Mon Nov 19, 2012 2:15pm IST

Related Topics

Stocks

   

* Shares in Bharti Airtel 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.

 (abhishek.vishnoi@thomsonreuters.com)
FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Barack Obama in India

Reuters Showcase

Coal Mining

Coal Mining

India to open coal to commercial mining firms soon, minister says  Full Article 

RBI Loan Rules

RBI Loan Rules

RBI relaxes overseas loan recast rules   Full Article 

E-commerce Firms

E-commerce Firms

Amazon, e-commerce rivals fuel commercial property boom in India  Full Article 

Growth Forecasts

Growth Forecasts

Indian economic growth forecasts pegged back, despite rate cuts: Reuters Poll.  Full Article 

Uber is Back

Uber is Back

Uber back in Delhi; govt says must await approval.  Full Article 

Markets at Record

Markets at Record

Sensex rises to record after ECB stimulus programme.  Full Article 

Pharma Sector

Pharma Sector

Ipca Labs hit by FDA ban on plant for standard violations.  Full Article | Related Story 

Forex Reserves

Forex Reserves

India FX reserves at record high as RBI fortifies defences  Full Article 

QE for Euro Zone

QE for Euro Zone

ECB launches 1 trillion euro rescue plan to revive euro economy.  Full Article 

Reuters India Mobile

Reuters India Mobile

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