Financial Daily from THE HINDU group of publications
Tuesday, Dec 09, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 09, 2003 |
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Markets
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Stock Markets Info-Tech - Stocks Bharti Tele soars on break even buzz Deeptha Rajkumar
REPORTS that Bharti Tele-ventures is likely to break even this year sent the domestic telecom major's stock surging ahead on the bourses amidst good volumes. In addition, technical chartists maintain that at these levels the stock is poised strongly. While concerns over the unified licence regime (ULR) had seen the counter range-bound for a while, it received a shot in the arm post-reports of the company looking at new acquisitions as well as investing about Rs 600 crore in States where it has applied for new licenses. Talk of the company considering an overseas listing has also sustained interest in the stock. Under the regime, WLL service providers will be able to provide full mobility services without applying for separate cellular permits. Companies such as Reliance Infocomm, which operate on code division multiple access (CDMA) technology, stand at an advantage given their lower capital investment, which in turn enables them to offer competitive rates over GSM operators. Before the introduction of ULR, restrictions on full mobility had enabled GSM operators to enjoy some advantage. "While the market may be discounting the fact that the ULR could hamper the company's prospects, one cannot negate the possibility that Bharti Tele could be looking at higher capital expenditure going forward in order to keep pace with the growing competition. The bottomline could come under pressure due to this," an analyst from a leading domestic broking house said. Bharti Tele-ventures offers cellular services in 15 circles spanning 93 per cent of the $5-billion mobile phone market. It also provides fixed line and Internet access services. The stock closed at Rs 90.75 up 8.49 per cent with around 23.34 lakh shares traded on the BSE. On the NSE, the stock closed at Rs 90.60 up 7.28 per cent with around 43.8 lakh shares traded.
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