Market gets spectrum boost, MTNL up 7.5%

The market bounced back strongly on the back of telecom shares after the government announced new guidelines for 3G spectrum

Telecom Minister Andimuthu Raja said the government will hold a global auction for third-generation mobile services for both GSM and CDMA players. Initially, there will be five operators.

India has 60 MHz of 3G spectrum available, said Minister Raja, who also announced mobile number portability that would allow users to switch operators while retaining existing numbers.

Shares of state-owned MTNL shot up 7.5 per cent to a high of Rs 111.65 on the news that the company and BSNL will be allotted the 3G spectrum right away.

Private sector player Tata Teleservices Maharashtra surged 4.42 per cent to trade at Rs 26. However, Bharti Airtel was trading flat, up 0.34 per cent at Rs 801.90.

At 1:31 pm, the Sensex was 14,541.63, higher by 185.88 points or 1.29 per cent, bouncing off the earlier low of 14,032.87. The 30-share index touched a high of 14,567.94.

Giving support were JP Associates (up 5.51%), HDFC (3.88%), BHEL (3.72%), Reliance Industries (3.66%), Tata Steel (3.23%), among others.

NSE’s 50-share Nifty was up 1.13 per cent at 4381.75, recovering from the low of 4235.70 to touch a high of 4391.80.

Advances on BSE numbered 1,460 and declines 1,025, while 83 shares were unchanged.