Telecom Stocks Gain As Markets Turn Flat; Bharti Airtel, Vodafone Idea Up 4% Each

New Delhi: Shares of telecom operators surged on Wednesday with Bharti Airtel and Vodafone Idea rising more than 4 per cent each. Bharti Airtel moved 4.19 per cent higher to Rs 709.55 in late morning deals. It also touched an intraday peak of Rs 713.80.

Voda Idea jumped 4.20 per cent to 10.42. The stock hit an intraday peak of Rs 10.92.

According to reports, the Department of Telecommunications (DoT) has reached out to mobile operators seeking their response on whether they want to opt for a four-year moratorium on spectrum payments and adjusted gross revenue (AGR) dues.

The department has also sought their views on whether they would prefer to convert the interest, which would accrue during the moratorium, into equity.

Telecom companies need to revert by October 29 if they choose the moratorium option. They have a further 90 days to respond on the equity conversion.

Companies opting for the moratorium proposal will have to furnish their audited financial statements.

In September, the Union Cabinet had approved a relief package for the telecom sector.

Meanwhile, the benchmark BSE Sensex and the broader NSE Nifty traded on a flat note in late morning deals amid profit-booking by investors.

Airtel, SBI, Tech Mahindra, HCL Tech and ICICI Bank were among the major gainers in the BSE pack.

On NSE, sub-indices Nifty PSU Bank and Media climbed as much as 2.67 per cent.