Bharti Airtel rallied 21 percent in October month so far.
The telco is seeking to shift 3G users to 4G via a VoLTE communication standard within the next few months, sources have Mint.
The midcap Index which was again the outperformer, up 1.29 percent led by Jain Irrigation Systems and Jaiprakash Associates while Bajaj Auto, ICICI Lombard General Insurance Company, MphasiS and Vedanta were some of few stocks that hit 52-week high on the NSE.
ICICI Direct is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 500 in its research report dated October 13, 2017.
"While consolidation activity is positive for the industry in the long-term, we still expect competition to remain intense over the next 12-18 months as leading operators -- like Bharti, Vodafone India and Reliance Jio Infocomm Limited - look to protect and grow market share," it said.
S&P said however that Airtel's rating is "unaffected" by its recently-announced acquisition of the Tata Group firm. "...in our view, this deal increases integration risk for Bharti because the company will be simultaneously integrating the operations of Telenor India (acquired last fiscal) and Tata Teleservices over the next 12-18 months, while responding to the intense competition," it said.
The deal, executed through their respective subsidiaries, will create Ghana's second largest mobile operator with nearly 10 million subscribers and USD 300 million in revenue.
Motilal Oswal is bullish on Bharti Airtel has recommended buy rating on the stock with a target price of Rs 470 in its research report dated October 12, 2017.
Market watchers have given a thumbs up to the acquisition that involve Airtel taking over the customers and spectrum of Tata Teleservices and Tata Teleservices Maharashtra in a cash free and debt free deal. Some analysts have even gone to the extent of saying that the takeover places the Sunil Mittal company to potentially "retain" the numero uno position even post Idea-Vodafone merger.
Reliance Industries which has a market capitalisation of over Rs 1 lakh crore rose to a fresh record high of Rs 891 on the BSE ahead of its Q2 results for the second day in a row.
The wave of consolidation continues in the telecom space. Tata Teleservices (Maharashtra) will merge with India's top service provider Bharti Airtel in a "debt-free" and "cash-free" deal.
As part of the deal, Airtel will assume a small portion of the unpaid spectrum liability of Tata Teleservices.
This is the first of multiple partnerships that the company is lining up with mobile handset manufacturers to bring such bundled 4G smartphone options to the market, Airtel said.
Sandeep Wagle of powermywealth.com is of the view that one can buy Bharti Airtel and sell Vedanta.
The top gainers in Nifty50 Index were Hindustan Petroleum Corporation which zoomed 4 percent followed by Bharti Infratel and Bharti Infratel which added 3.71 percent and 2.98 percent respectively. From the oil & gas space, Indian Oil Corporation was the top gainer, up 2.15 percent while 2-wheeler manufacturer Bajaj Auto gained 1.92 percent.
The index is now just a little over 100 points away from hitting a fresh record high of 10,178 but analysts' do not see a breakout even if Nifty reclaims record high level.
In the Nifty50 Index, the top gainers were GAIL India which was up 2.33 percent followed buy Bharti Infratel which added 1.79 percent while Sterlite Technologies was the top gainer in the BSE which zoomed 8.92 percent.
Net Sales are expected to decrease by 1.7 percent Q-o-Q (down 12.3 percent Y-o-Y) to Rs. 21640.3 crore, according to ICICI Securities.
Sudarshan Sukhani of s2analytics.com is of the view that one can buy Godrej Consumer Products, JSW Steel and L&T Finance Holdings and can sell Bharti Airtel and Cummins India.
Credit Suisse believes that there could be spectrum purchase opportunities for Bharti Airtel which may not come in cheap. It is of the view that Q3FY18 will see the impact from drop in termination rate.
On the state of competition in the telecom sector -- which saw fierce tariff wars hitting the bottom line of large telcos -- Mittal said "competition is going down".
"What worries me is that due to lack of global leadership, we are seeing large powerful countries now starting to talk about barriers... This is the time when India needs to even more forcefully talk about its narrative of openness and open societies," Mittal said while addressing a session at the India Economic Summit of the World Economic Forum (WEF).
Airtel will invest Rs 18,000 to Rs 20,000 crore this year, he said, adding that the industry overall will be injecting Rs 50-60,000 crore to build digital infrastructure.
On the timeline for completion of the merger, he said it will happen by 2018. Earlier this year, Vodafone India and Idea Cellular had agreed to merge their operations to create the country's largest telecom operator worth of more than USD 23 billion with a 35 per cent market share.
It is the first such joint venture proposed in Ghana's highly competitive telecom sector. Put together, the new entity would become Ghana's second largest mobile operator serving around 10 million subscribers with revenues close to $300 million.