Mumbai, November 18 (IANS): Vodafone-Idea Ltd (VIL), on Monday which had hinted at not being able to remain as a going concern if relief does not come for the sector, advanced nearly 25 per cent on the NSE over a possible government-led revival.
The sharp reversal in Vodafone and other telecom counters came after Finance Minister Nirmala Sitharaman said the government doesn't want any telecom company to shut operations.
VIL closed 24.66 per cent higher at Rs 4.55 a stock on the NSE while Bharti Airtel also ended 4.62 per cent at Rs 411.20 apiece. Besides, the BSE Telecom index also jumped 3.42 per cent.
"Telecom stocks showed good momentum over reports that the government is considering a floor on tariffs," said Deepak Jasani of HDFC Securities.
Airtel and Vodafone Idea have posted a combined loss of Rs 74,000 crore in Q2 by provisioning for the AGR pending dues.
"All factors have been subsumed in the discussions within the government on the telecom sector. Post-AGR, the Finance Ministry is trying to understand the impact of the order on the telecom sector," Sitharaman had said.
