Shares of Tata Teleservices (Maharashtra) were buzzing in trade, skyrocketing over 13 percent, its biggest intraday gains in three months. The rally in the stock was driven by an upsurge in trading volumes in the counter. So far, five crore shares of the company have already changed hands, a meteoric spike when compared to the one month daily traded average of 32 lakh shares.
At 1.27 pm, shares of Tata Teleservices were trading at Rs 77.15 on the NSE, slightly off its day's high of Rs 78.20.
Sentiment for the stock has been trending upwards over the past week. This shift came after the Supreme Court ruled last week in favor of telecom operators, allowing them to claim central value-added tax (Cenvat) credits on duties paid for essential infrastructure items like tower components, shelters, and other related materials.
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The ruling overturned a previous judgment by the Bombay High Court, which had classified these items as non-capital goods, denying telecom companies the right to claim the credit. This decision came as a significant relief for telecom firms like Tata Teleservices, granting them the ability to claim tax credits that were previously considered ineligible.
On top of that, the Union Cabinet also approved the waiver of bank guarantees for telecom operators, which will apply to spectrum acquired in auctions held before 2022, according to reports. This move, aimed at easing the financial burden on the telecom sector, has been well-received, sparking broad buying activity across the sector.
The two positive triggers helped the stock glimmer in the green for three straight sessions, clocking in nearly 17 percent gains in the period.
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