Bharti Airtel shares hit new life high, Vodafone Idea shares jump 7.5% amid news around likely relief package for telecom sector in Cabinet Meeting on Wednesday

The telecom companies stock mainly Bharti Airtel and Vodafone Idea are on roll, as the former hit new life high to Rs 684 per share, while the latter surged by 7.5 per cent to Rs 8.9 per share on the BSE intraday trade on Wednesday, ahead of Cabinet meeting scheduled today.

According to a news agency Indo-Asian News Service quoting sources on Tuesday had reported that the Union Cabinet is likely to consider and discuss a relief package for the sector. 

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The government has been in talks with several stakeholders, including banks, for a package for the sector as Vodafone Idea is in a beleaguered state with heavy losses and high debt and concerns have been raised over a possible duopoly in India telecom sector if it shuts, the IANS report said. 

Individually, Vodafone Idea shares have surged 49 per cent in the past seven trading sessions, including today's gain, on the back that the government is likely to provide the necessary support to address all structural issues faced by the sector.

"As the industry continues to remain under unsustainable financial duress, the company is hopeful that the government will provide the necessary support to address all structural issues faced by the sector,” the cash-strapped Vodafone Idea had said in its annual report released earlier this week.

“Therefore, while the company awaits the final government’s decision, it will continue to remain focused on providing quality service to the customers and sustain intensity in the market," the stressed telecom company further said. 

On the other hand, the shares of Airtel have been gaining in the last couple of sessions on multiple triggers such as fundraising plans, changes in entry-level tariffs announcements among others. The stock on Wednesday surged 2 per cent to Rs 684 per share intraday on BSE, while it has jumped near 17 per cent from Rs 587 per share since August 26, 2021.