Aksh Optifibre, Tejas Networks, GTL Infrastructure, and HFCL shares gained 2-5 percent on February 1 as Finance Minister Nirmala Sitharaman in her budget speech focused on expansion of the optical fibre network under the Bharatnet project.
The project aims to bring rural access to e-services, communication facilities, and digital resources on par with urban areas.
"The contracts for laying optical fibre in all villages, including remote areas, will be awarded under the project through PPP (public private partnership) in 2022-23. Completion is expected in 2025. Measures will be taken to enable better and more efficient use of the optical fibre," Sitharaman told the Lok Sabha.
She said the telecommunication segment in general and 5G technology in particular can enable growth and offer job opportunities. "Required spectrum auctions will be conducted in 2022 to facilitate rollout of 5G mobile services within 2022-23 by private telecom providers," she said.
"A scheme for design-led manufacturing will be launched to build a strong ecosystem for 5G as part of the production-linked incentive scheme," the minister added.
Further, to enable affordable broadband and mobile service proliferation in rural and remote areas, five percent of annual collections under the Universal Service Obligation Fund will be allocated, which will promote research & development and commercialisation of technologies and solutions, said Sitharaman.
Aksh Optifibre was locked in 5 percent upper circuit at Rs 13.33 on the BSE, with a market capitalisation of Rs 216.88 crore, while Tejas Networks was up 2.69 percent at Rs 422.
HFCL surged 4.86 percent to Rs 83, with a market cap of Rs 11,425.65 crore, while Indus Towers and ITI gained 1.5 percent each. GTL Infrastructure was up 2.88 percent at Rs 2.14.