Budget 2022: Telecom-related stocks gained after FM announced 5G rollout, optical fiber in rural areas | Vodafone Idea, Airtel, Tejas stocks in focus

Telecom-related stocks reacted mixed to the finance minister Nirmal Sitharaman’s slew of measures announced related to the sector, mainly to the 5G spectrum rollout, during the Budget FY23 speech. 

She said that the 5G spectrum auctioned will be started in FY23, and shall increase the employment in the sector, the finance minister said, adding that the telecom sector will be promoted under the PLI (production-linked incentive) scheme and affordable broadband will be promoted in rural areas. 

See Zee Business Live TV Streaming Below:

Moreover, Sitharaman also said that e-services will be delivered to the villages as well as the optical fiber will be laid in the villages, under the Bharat Net project, which shall be completed by 2025. 

The telecom stocks didn’t cheer much as it was majorly speculated about the 5G roll-out in the coming financial year. However, the Vodafone Idea jumped almost 5 per cent, and Bharti Airtel, a telecom major gained marginally by 1 per cent on the BSE intraday. Both the stocks closed almost 1 per cent down on the BSE at the market close. 

While on the expansion of optical fiber news, stocks such as Aksh Optifibre, Tejas Networks, GTL Infrastructure, and HFCL shares gained 2-5 per cent on the exchanges.  

Aksh Optifibre shares were hit an upper circuit of 5 per cent; Tejas Networks shares gained almost 3 per cent; HFCL surged nearly 5 per cent; Indus Towers and ITI gained 1.5 per cent each and GTL Infrastructure was up nearly 3 per cent on the exchanges intraday.