-->

Tata Teleservices Shares Surge 13% on Strong Trading Volumes, Positive Sector Sentiment - Read Now

Tata Teleservices shares surged 13% on heavy trading volumes, following a Supreme Court ruling allowing telecom firms to claim Cenvat credits and the Union Cabinet’s approval of bank guarantee waivers. This positive sentiment boosted the telecom sector.

 
Tata Teleservices Shares Surge 13% on Strong Trading Volumes, Positive Sector Sentiment - Read Now

Tata Teleservices (Maharashtra) has seen its stock price soar by 13%, marking its biggest intraday gain in three months. The telecom company's shares were trading at Rs 77.15 on the NSE at 1.27 pm, after hitting a high of Rs 78.20 earlier in the day. The sharp rally was primarily driven by a surge in trading volumes, with over five crore shares exchanged in just a few hours, compared to the one-month daily average of 32 lakh shares.

The significant increase in Tata Teleservices’ stock price comes amidst a broader positive sentiment across the telecom sector. The rally follows key developments, including a crucial Supreme Court ruling and favorable government actions that have boosted investor confidence in the telecom industry.

Key Factors Behind the Rally

  1. Supreme Court Ruling in Favor of Telecom Operators
    Last week, the Supreme Court delivered a major victory for telecom operators by allowing them to claim central value-added tax (Cenvat) credits on essential infrastructure items such as tower components and shelters. This ruling overturned a previous judgment by the Bombay High Court, which had denied telecom companies the right to claim tax credits on these goods. The decision is seen as a major relief for telecom companies like Tata Teleservices, granting them a long-awaited financial boost.

  2. Union Cabinet’s Approval of Bank Guarantee Waiver
    Another major catalyst for the surge in Tata Teleservices’ stock price is the Union Cabinet’s approval of the waiver of bank guarantees for telecom operators. This decision applies to spectrum acquired in auctions held before 2022 and is aimed at easing the financial burden on telecom companies. The waiver is seen as a game-changer for the telecom sector, and investors have responded positively, driving strong buying activity across the entire sector.

Positive Sentiment for the Telecom Sector

These developments have created a wave of optimism within the telecom sector, with Tata Teleservices being one of the primary beneficiaries. The stock has now posted gains of nearly 17% over the past three sessions, as investors flock to telecom stocks following the favorable news.

The approval of the bank guarantee waiver is particularly significant, as it will help relieve some of the financial pressure on telecom companies that have been struggling to meet their obligations for spectrum acquired in earlier auctions. The move is expected to improve cash flow for these companies, which could potentially lead to further investments in infrastructure and network expansion.

What’s Next for Tata Teleservices?

With trading volumes continuing to surge and positive sentiment surrounding the telecom sector, Tata Teleservices’ stock could see further upward momentum in the coming days. As of now, the company’s shares have gained substantial ground, but the market remains focused on upcoming developments in the sector, including any further government interventions or regulatory changes.

Also Read: Alert: You May Get Fired for Sleeping in Office — But This Employee Just Won Rs 41 Lakh in Compensation! 

Tags

Share this story

Latest News

Must Read

Don't Miss