Shares of Idea Cellular soared by 7.70 per cent, while Bharti Airtel rose by 3.43 per cent. Reliance Communications gained 2.90 per cent on the BSE.
In the previous session, these stocks had lost up to 3 per cent amid fears of heightened competition in the mobile spectrum auction.
Marketmen said that those fears are now overdone and stock rose on value buying.
Bids totalling over Rs 44,600 crore were received on the second day of the wireless spectrum auction today with demand remaining robust.
Eight companies including Mukesh Ambani's Reliance Jio Infocomm Ltd, Bharti Airtel and Vodafone are competing two bandwith slots - 900 MegaHertz and 1,800 MHz in 22 offered in the third spectrum auction in 15 months.
Aggressive bidding was seen for the 900 MHz, which is in short supply and is being auctioned in just three cities - Delhi, Mumbai and Kolkatta - markets where licenses of Bharti and Vodafone are to expire in November unless they buy airwaves in the auction.
Shares of Idea also gained as the Department of Telecom (DoT) on February 1 transferred the licences for Punjab and Karnataka circles held by erstwhile Spice Communications to the company, following a Supreme Court order.
"The DoT has, on February 1, 2014, transferred the licenses for Punjab and Karnataka service areas held by erstwhile Spice Communications Limited to Idea," Idea Cellular said in a regulatory filing to the BSE.
It, however, said this is subject to final outcome of Idea petition at TDSAT challenging penalties imposed by DoT in connection with acquisition of erstwhile Spice which remain stayed.