Major players Reliance Jio and Bharti Airtel have announced a hike in their tariff plans, a move that has caused notable fluctuations in the stock market. On the back of these announcements, both Reliance and Bharti Airtel saw their stock prices rise, while Vodafone Idea faced a decline.
Early morning trading on Friday saw Bharti Airtel’s share price open at ₹1,536.25 per share, hitting an intraday high of the same value on the NSE. Similarly, Reliance Industries Limited, which owns Reliance Jio, also experienced a surge in its stock price. Reliance opened at ₹3,062.05 per share and reached an intraday high of ₹3,129.85, surpassing its previous peak of ₹3,075. This marked the third consecutive session in which Reliance shares hit a new high, extending a bullish trend for the fourth straight session.
Vodafone Idea did not fare as well. Despite opening on a positive note at ₹19.10 per share, the stock quickly came under selling pressure, falling to an intraday low of ₹17.91. This represents a significant drop of about 2.5% from Thursday’s closing price of ₹18.52. The contrasting movements of these stocks highlight the market’s response to the tariff hikes and the differing investor confidence in these companies.
Reliance Jio’s new tariff plan involves a revision of prices across its existing monthly to annual plans. The monthly plan, previously priced at ₹155, has been increased to ₹189. Other monthly plans in this category have also been revised upwards. Similarly, the two-month plan has seen an increase from ₹470 to ₹579, and the three-month plan has gone from ₹395 to ₹479.
Bharti Airtel has also announced a revision in its telecom tariff plans. The company emphasized the need for tariff repairs in the industry and stated that the price hike is modest to avoid burdening budget-conscious consumers. The revised plans for pre-paid users include the ₹179 unlimited voice plan, now priced at ₹199, the ₹455 plan increased to ₹509, and the ₹1799 plan, which has been raised to ₹1999. The company indicated that the new tariffs will be effective from July 3rd, 2024, with an increase of less than 70 paise per day for entry-level plans.
The market’s reaction to these announcements reflects the varying levels of confidence in the respective companies. Investors seem optimistic about the future prospects of Reliance and Bharti Airtel, as evidenced by the rise in their share prices. This optimism likely stems from the anticipation that the tariff hikes will improve revenue margins and strengthen the financial health of these companies. Conversely, Vodafone Idea’s decline suggests that investors are less confident about its ability to compete effectively in the current market landscape.
The recent developments underscore the dynamic nature of the telecom sector in India, where market leaders are making strategic moves to enhance profitability amidst intense competition. As Reliance Jio and Bharti Airtel continue to strengthen their market positions, Vodafone Idea faces challenges that are reflected in its stock performance.
The coming weeks will be crucial in determining how these tariff hikes impact the overall market dynamics and the financial stability of these telecom giants. Investors and market analysts will be closely watching the performance of these stocks, as well as any further announcements from the companies, to gauge the long-term effects of these strategic decisions.
