Indian shares soar; bank, telecom stocks earn
NOV 19- Indian shares soared on Tuesday boosted by banking and telecom stocks. This followed after two major mobile network service providers disclosed their scheme of increasing tariffs this coming December.
The NSE Nifty 50 index inched higher with 0.2% with 11,906.25 while the S&P BSE Sensex acquired 0.4% to 40,455.36.
“Markets are in a consolidation phase after the recent rally,” said A.K Prabhakar, head of research at IDBI Capital.
The Nifty primary index increased with 12% after hitting a six-month low last August. Government actions to increase investor confidence as Asia’s third-largest economy suffers from inactivity prompted gains.
Tariff hike scheme by telecom companies will benefit banks as it has a direct impact to the sector, Prabhakar said.
Bharti Airtel and Vodafone Idea disclosed their plan of increasing mobile tariffs starting December. Such decision followed after releasing their quarterly losses record.
Airtel increased shares with 4.8% and was recorded to one of the top gainers in the Nifty index while Vodafone recorded an 18% gain. In line, Banking and IT stocks heavily brought in earnings acquiring 0.2% to 0.4%.
11,700-11,800 range supports the Nifty according to Amit Shah, technical research analyst of Indiabulls Ventures.
The index is expected to reach an all-time high above the 12,100 zone, Shah added.