PSU telecom stocks such as MTNL (Mahanagar Telephone Nigam Ltd) and ITI jumped up to 15% on Thursday on strategic collaboration plan by the Indian government.
PSU telecom stocks such as MTNL (Mahanagar Telephone Nigam Ltd) and ITI jumped up to 15% on Thursday on strategic collaboration plan by the Indian government. The strategic plan for synergizing PSUs of India aims at rationalizing human resources, pooling of training capacity and other resources, optimum utilization of land and buildings, settlement of legal issues etc to promote make in India, PIB said in a tweet. Following the announcement, shares of state-run mobile services provider MTNL and the state-owned telecom equipment manufacturer ITI surged up to 15%. The emphasis on pooling resources for projects of national significance, focus on sharing land resources between DoT (Department of Telecommunications) and PSU telecom companies.
The stock of MTNL advanced as much as 14.66% to the day’s high of Rs 25.8 and the stock of ITI Ltd soared 5.95% to the day’s high of Rs 132.5 on NSE. An unusually heavy trading volume was observed in the shares of MTNL, as at 1:15 pm, more than 1.1 crore shares exchanged hands on both NSE and BSE with about 94 lakh on NSE alone while the same surge in volume in shares of ITI was witnessed. About 40 lakh shares of ITI shares were traded up until the same time. On announcing the strategic plan for PSU telecom companies, the government said that C-DOT, ITI to partner on projects of national importance, such as Bharat Net, Digital India.
Earlier last week, MTNL posted a net loss of Rs 639.01 crore for the October-December period for the financial year 2017-2018 as against Rs 819.96 crore in the corresponding period last year. While on the other hand, ITI reported a 2-fold rise in the net profit for the third quarter ended 31 December 2017. “Company’s total income for the period ended December 31, 2017, was Rs 922 crores up and net profit for the period was increased by 109% to Rs 19 crores for the period ended December 31, 2017, without any aid from government as against the loss of Rs 203 crores for the previous year,” ITI said in a press release.
Meanwhile today, Indian stock markets are hovering in negative territory with the key equity indices Sensex and Nifty trading marginally lower in the afternoon session. At the time of writing, the benchmark S&P BSE Sensex was trading 80.42 points or 0.24% lower at 33,764.44 with shares of Sun Pharma, Adani Ports, Yes Bank, IndusInd Bank, Kotak Mahindra Bank, and Infosys leading the charge rising up to 4% while the shares of Dr Reddy’s, ONGC, Power Grid, HUL, Asian Paints, Tata Motors, Maruti Suzuki, NTPC, ICICI Bank, HDFC Bank, and HDFC traded in red.