Domestic stocks rebounded on the stock markets on Wednesday to a record high as retail inflation eased, which benefited bank stocks, and leading telecommunications company Bharti Airtel gained after starting the process of ‘increase in the limit on foreign investment.
Markets are also awaiting third quarter results from large tech companies Infosys Ltd and Wipro Ltd later today.
Bharti Airtel shares climbed 6% at the start of trading on Wednesday after the company received approvals for 100% foreign direct investment (FDI) in its affected downstream companies.
Shares of the telecommunications giant were trading at Rs 591.50, up 25.75 points or 4.55 percent on the National Stock Exchange (NSE) at noon. Bharti Airtel’s bull run may push it to hit its 52-week high of Rs 612 which it reached in May 2020 according to the National Stock Exchange (NSE).
On the Bombay Stock Exchange (BSE), Airtel’s 52-week high is Rs 611.7052 while the 52-week low is Rs 381.05.
In a regulatory filing on Tuesday, the telecommunications major said it was starting the process of revising the limit on foreign investment to 100% with immediate effect.
“In accordance with the FDI approval of January 20, 2020, granted to the company by the Department of Telecommunications (DoT), the company has received approvals for its relevant downstream investments. As a result, the company is starting the process to revise its foreign investment limit, as notified to its depositors, to 100 percent with immediate effect, ”the company said in a statement.
The other reasons for the rise in the share price of Bharti Airtel is the growth potential of the company. According to data released by the Telecommunications Regulatory Authority of India (TRAI), the company had the largest user base as of September 2020. The data was released in December. In view of the increase in the number of users, it is also expected that in the third quarter results the company can record good profits and revenues.