Shares of Tata Teleservices (Maharashtra) soared over 13% on November 25, marking their biggest intraday gain in three months. This sharp rise was fueled by an extraordinary surge in trading volumes. So far, around 5 crore shares have exchanged hands, a dramatic increase compared to the 32 lakh daily average traded over the past month.
At 1:27 PM, the stock was trading at Rs 77.15 on the NSE, slightly below its intraday high of Rs 78.20.
What’s Driving the Rally?
- Supreme Court Ruling on Cenvat Credits
- The Supreme Court had last week set aside an order of the Bombay High Court and allowed telecom operators to claim Cenvat credits on duties paid on main infrastructure materials such as tower components and shelters.
- This decision is a significant financial relief for telecom firms, including Tata Teleservices, enabling them to claim previously ineligible tax credits.
- Union Cabinet’s Waiver of Bank Guarantees
- The government approved the waiver of bank guarantees for spectrum acquired in auctions held before 2022, easing financial pressures on telecom operators.
- This pro-industry reform has positively impacted investor sentiment across the telecom sector.
Recent Performance
These two major policy wins have catalyzed a positive momentum for the stock, which is up nearly 17% in the last three sessions. Tata Teleservices has headed the green list for quite some time now, indicative of the restoration of investor confidence in the company’s outlook.
Looking Ahead
The financial relief measures, coupled with some positive tax credit rulings, are likely to favorably support the company’s operational costs and cash flow, boosting its long-term growth potential. Investors are keenly waiting for further developments in the sector.
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Source: Moneycontrol
News Desk
