As per a CNBC-TV18 report, the cabinet on September 15 approved a relief package for the telecom sector, while announcing a moratorium of 4 years on Adjusted Gross Revenue (AGR) dues.
Most telecom stocks, including Bharti Airtel, Reliance Communications and Vodafone Idea traded higher after reports emerged that the Union Cabinet had approved a relief package for the sector.
As per a CNBC-TV18 report, the cabinet on September 15 approved a relief package for the telecom sector, while announcing a moratorium of 4 years on Adjusted Gross Revenue (AGR) dues.
The announcement has come a month after Kumar Mangalam Birla resigned as chairman of Vodafone Idea (VIL) on August 4.
The cabinet’s decision will benefit sectoral players such as Bharti Airtel, Vodafone Idea and Tata Telecom.
The BSE Telecom index was up over 4 percent at 1335 hours with 11 components in the green and only two – Sterlite Technologies and Indus Towers – in the red.
Shares of Bharti Airtel jumped 6 percent while those of Reliance Communications jumped 5 percent. Shares of Vodafone Idea were up 3 percent.
Equity market benchmarks the Sensex and the Nifty hit their fresh record highs in intraday trade as risk appetite of investors improved after the US inflation data came below the expected lines, bolstering hopes that the US Fed may not begin its stimulus tapering exercise anytime soon.
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