Indian markets were firm today, tracking higher Asian markets. The Sensex rose as much as 364 points while Nifty was back above 11,950. Bharti Airtel surged 7% to be the top gainer in the Sense pack. Among other gainers, SBI, Tata Motors, ICICI Bank, M&M, HUL and RIL rose between 1% and 3%.
Vodafone Idea on Thursday reported the biggest quarterly loss in India’s corporate history after making provisions for outstanding government dues. Vodafone Idea reported a consolidated net loss of ₹50,900 crore in the second quarter to September. Another telecom operator Bharti Airtel on Thursday reported a consolidated net loss of ₹23,045 crore in three months to September. Bharti said it made a provision of ₹28,450 crore.
Commenting on Bharti Airtel’s results, Motilal Oswal said that Bharti Airtel, adjusted for the provision, reported better-than-expected Q2FY20 numbers with strong growth across key verticals and ₹8,930 crore EBITDA versus Street’s ₹8210 crore estimate.
“We believe, the AGR order impacts Vodafone Idea the most, impairing its ability to invest in network. This will provide Bharti an opportunity to boost market share, driving profitability,” said Motilal Oswal, which has a buy rating on Bharti Airtel.
Ajit Mishra, vice president for research at Religare Broking, said: “We expect Nifty to consolidate further in the near future thus suggest continuing with the stock-specific trading approach. In the absence of any major event, global markets will continue to dictate the market trend. We advise keeping close eye on the banking index for cues.”
Asian markets were mostly higher on hopes that the US and China are close to signing a trade deal. White House economic adviser Larry Kudlow said on Thursday that Washington was getting close to a trade agreement with China.