Domestic stocks rallied on Wednesday at the bourses to surge to a record high as retail inflation eased, benefitting banking stocks, and telecom major Bharti Airtel gained after it set in motion the process to increase foreign investment limit.
The markets also are expecting Q3 results from big tech companies Infosys Ltd and Wipro Ltd later in the day.
Bharti Airtel’s shares soared 6 per cent in early trade on Wednesday after the company received the approvals for 100 per cent foreign direct investment (FDI) in its relevant downstream companies.
Shares of the telecom major were trading at Rs 591.50, up by 25.75 points or 4.55 per cent on the National Stock Exchange (NSE) at noon. The bullish run of Bharti Airtel can coast it to touch its 52-week high of Rs 612 which it had hit in May 2020 as per the National Stock Exchange (NSE).
On the Bombay Stock Exchange (BSE), Airtel’s 52-week high is of Rs 611.7052 while 52-week low is of Rs 381.05.
In regulatory a filing on Tuesday, the telecom major said that it is initiating the process to revise the foreign investment limit to 100 per cent with immediate effect.
“In compliance with the FDI approval dated January 20, 2020, granted to the company by the Department of Telecommunications (DoT), the company has received approvals for its relevant downstream investments. Accordingly, the company is initiating the process to revise its foreign investment limit, as notified to its depositors, to 100 per cent with immediate effect,” the company said in a release.
The other reasons behind the rise in the share price of Bharti Airtel is the growth potential of the company. As per the data released by the Telecom Regulatory Authority of India (TRAI), the company had the highest user base in September 2020. The data was released in the month of December. Noticing the increase in the number of users it is also expected that in Q3 results, the company may book good profits and revenues.