The Telecom sector is one of the most financially distressed sectors’ in India currently. Except for Reliance Jio, all the private telecom operators are in a ton of debt where one operator’s future in the market has been questioned. Regardless, the telecom stocks have seen positive growth this week. Even the struggling Vodafone Idea's (Vi) stock has found some sort of stability, unlike the volatile movements a couple of weeks back. But this week has especially been good for Bharti Airtel and Reliance Industries Limited (RIL). For the unaware, RIL owns the telecom player Reliance Jio.
Bharti Airtel and RIL Stock Goes Up
Both Bharti Airtel and RIL’s stock has seen a surge today. Airtel’s stock closed at 0.35% higher, while RIL’s stock jumped 0.40%. The closing price of Airtel’s stock was Rs 666.40, while RIL’s stock closed at Rs 2,267.10.
It is worth noting that Airtel yesterday saw a gain of 7% on Tuesday. The telco’s share price had jumped from Rs 620.45 to Rs 664.05 on Tuesday. The marginal gain today, i.e., suggests that the market outlook towards the telco is positive.
We further expect the price of the telco to move upwards in the coming weeks, and so do all the analysts. This should happen because of a couple of factors, including the relief package from the government, the capital raise through a rights issue, and the announcements related to 5G.
Both Bharti Airtel and Reliance Jio will be eyeing a larger market share before they enter into the 5G era in India, and that will help them get more eyeballs in the market. (Note that this is not investment advice, and you should do your own research before purchasing a stock or investing/trading/holding.) The market outlook towards the top two private players should be positive only for the coming months because of the fact that the third private operator isn’t going strong.