Shares of India’s largest telecom company Bharti Airtel advanced more than 7% in the late afternoon trades on Thursday. The stock of Bharti Airtel witnessed a massive spike after 2 pm today, for reasons yet unknown. Following the huge surge in the stock prices of Bharti Airtel, it topped both the key indices Sensex and Nifty. The stock of Bharti Airtel gained as much as 7.11% to Rs 518.4 on BSE while it zoomed 7.24% to Rs 518.5 on NSE. Amid the heavy trading volumes, over 65 lakh shares exchanged hands on both BSE and NSE with about 62.61 lakh shares on NSE alone. With a huge spurt in the share prices of Bharti Airtel, the market capitalisation of the company saw an appreciation of Rs 13,771.04 crore to Rs 2,07,225.22 crore from Rs 1,93,454.18 a day earlier. Bharti Airtel shares settled up 6.5% at Rs 515.4.
Earlier this year, Airtel has reported a better-than-expected fiscal second quarter financial results, which beat most analyst estimates even as its consolidated adjusted net profit plunged 77% and revenue fell 10.4% on-year on an underlying basis. India’s largest telecommunication services company’s Jul-Sep adjusted net profit fell to Rs 343 crore from Rs 1,461 crore in the same quarter a year ago, as competitive pressure from Reliance Jio continued to weigh, leading to a sharp drop in its India revenues. Bharti Airtel’s aggressive tariff offers to counter relentless competition from Reliance Jio hurt earnings, and the ongoing tariff war in the telecommunication sector led to a sharp fall in the money earned per customer.
Meanwhile, the key equity indices Sensex and Nifty opened almost unchanged in green but quickly extended the gains on Thursday on the back of value buying after an 8-day negation which led the key benchmark indices to drop by 3%. BSE Sensex jumped 395.27 points to hit the day’s high of 32,992.45 while NSE Nifty edged up 138.55 points to mark the day’s high at 10,182.65. Investors seemed to have taken a sigh of relief after macroeconomic data-packed week ended yesterday with RBI fifth bi-monthly monetary policy keeping the repo rate unchanged at 6%.