Budget 2023: Bharti Airtel, RIL, ITI, HFCL gain as govt to set up 100 labs to develop 5G applications

Shares of telecommunication service providers and telecom infrastructure hogged the limelight after Finance Minister Nirmala Sitharaman said that the government will set up 100 labs to develop 5G applications.

Following the announcement, shares of Bharti Airtel traded 1.24 per cent higher at Rs 779.80 at around 12.09 pm (IST), while the benchmark BSE Sensex was up 530 points, or 0.89 per cent, at 60,080 at around the same time. Energy-to-telecom behemoth Reliance Industries traded 0.09 per cent up at Rs 2,356.

Shares of HFCL traded 2.24 per cent higher at Rs 70.90, while ITI Ltd was up 0.58 per cent at Rs 103.45. HFCL is engaged in the business of diverse telecom infrastructure enablers with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment, among others.

Meanwhile, the government seems focused on improving infrastructure (railways, roads, airports) and has increased spending.

Manish Chowdhury, Head of Research, Stoxbox said, “We believe that the increased capital investment outlay to Rs 10 lakh crore from Rs7.5 lakh crore is a big positive for the overall economy and would have a multiplier effect on the economy. The outlays for railways at Rs 2.4 lakh crore are the highest ever and 9 times from FY14. This shows the government’s intent to build infrastructure, with a focus on both urban and rural areas. We believe that infra, cement and steel sector stocks should benefit in the foreseeable future.”
 

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