The Economic Times daily newspaper is available online now.

    Market Movers: Bharti Airtel charts its own course; CLSA makes HAL soar

    Synopsis

    The hike in the post-paid segment, which contributed upwards of 25 per cent to sales, will help improve the Arpu for Airtel even if it comes at the cost of losing a few customers.

    Market Movers: Bharti Airtel charts its own course; CLSA makes HAL soar
    Shares of HAL rose over 4 per cent in agreement but CLSA believes that the gravy train or gravy flight of HAL is just getting started.
    MUMBAI: Bharti Airtel is charting its own course in the telecom sector despite being the second largest player. Where industry leader Reliance Jio wants to lure customers as much as its seamless network can handle, Bharti Airtel is focused on getting more bang for its buck.

    And, investors love it!

    Shares of the second-largest telecom operator in the company surged over 4 per cent as it announced new tariff plans for its post-paid customers, which will effectively lead to a 30-40 per cent rise in tariffs.

    The hike in the post-paid segment, which contributed upwards of 25 per cent to sales, will help improve the Arpu for Airtel even if it comes at the cost of losing a few customers. Airtel is currently leading Reliance Jio in terms of profitability, and the New Delhi-based company intends to keep things that way.

    HAL soars to the sky
    Some, not all, brokerages can change the point of view of the market. They are rare, but when they say things the market tends to listen. No surprise then that CLSA Asia-Pacific’s bullish initiation report on Hindustan Aeronautics got the Street chirping.

    CLSA projected that HAL can grow earnings at 14 per cent annually for the next five years as the government of India raises its expenditure on modernising its defence. “HAL’s integrated design-to-production capabilities, market access, growing after-market, net-cash position and operating leverage provide long-term thrust levers,” the brokerage said.

    Shares of HAL rose over 4 per cent in agreement but CLSA believes that the gravy train or gravy flight of HAL is just getting started.

    Roller-coaster for HUL
    The stock market can be a harsh place, sometimes even harsher than the comment section on Twitter. One moment you are the toast of every investor, the other you are a disappointment. Judgement is instant. No one knows this roller-coaster ride better than India’s largest FMCG company, HUL.

    Shares of the company popped over 2 per cent after the company announced a decent set of numbers for the June quarter with volumes bettering most estimates. Yet an hour later, all those gains were wiped out as the stock closed over 2 per cent lower.

    The reason for the flip in mood? Well, investors realized that the lower-than-expected operating margins in the June quarter were something they couldn’t ignore after all. Plus, the company’s price hikes in the quarter weren’t sufficiently high enough to protect margins leaving investors worried over the company’s growth.



    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more


    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
    The Economic Times

    Stories you might be interested in