Telecom shares rally on hopes of spectrum price cut, Bharti Airtel up 9%
Bharti Airtel shares were trading 4.2 percent higher at 320 rupees as of 0429 GMT, while shares in Idea Cellular Ltd , India's third-biggest mobile carrier by revenue, were up 3.2 percent at 117.3 rupees.
Idea is not required to bid in the March auction, but any possible cut in reserve price will also help it when it buys airwaves in subsequent auctions.
"There are chances that the government will reduce prices significantly," said Archana Shivane, a sector analyst at K.R. Choksey Shares and Securities Pvt Ltd in Mumbai. "That will consequently make Bharti, Vodafone, Idea pay lower spectrum prices to government. So ultimately that will come on (their) balance sheet in terms of lower debt," she said.
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