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

Mon Nov 19, 2012 2:16pm IST

Related Topics

Stocks

   

(Adds coding with no changes to text)
* 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:

Reuters Showcase

Adani Restructuring

Adani Restructuring

Adani says to restructure business  Full Article 

Bank of Baroda

Bank of Baroda

Q3 net profit down 69 pct on higher provisions  Full Article 

Trading Fees

Trading Fees

BSE slashes fees in FX derivatives battle with NSE  Full Article 

SpiceJet Turnaround

SpiceJet Turnaround

SpiceJet board approves up to $243 mln share sale plan  Full Article 

Currency Market

Currency Market

RBI urges companies to hedge FX exposure  Full Article 

Uber's Woes

Uber's Woes

Delhi Uber passenger who alleges driver rape sues in U.S.  Full Article 

Banking Sector

Banking Sector

Banks say no room to cut lending rates, thwarting RBI easing  Full Article 

ICICI Results

ICICI Results

ICICI sets quarterly record profit as Q3 net rises 14 pct  Full Article 

Reuters Poll

Reuters Poll

RBI seen holding rates steady on Tuesday, minority of analysts expect cut  Full Article 

Reuters India Mobile

Reuters India Mobile

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