Bharti Airtel, Vodafone Idea breathe easy even as new JioPhone arrives

The template is this, Reliance Jio announces or launches something bold and daring, and investors from and Vodafone Idea run for coverage. The announcement of the launch of the JioPhone Next with its attractive price point was one such.

However, unlike in the past when such an announcement would freak the investors of the other two telecommunications companies, this time it gave relief.

While the JioPhone Next is offered at an attractive price point, the bundled mobile plans that are tagged with it are anything but. According to Nomura India, the bundled mobile plans with Jio’s new phone are at a premium of 20-30 percent for regular daily data plans.

Jio’s move suggests it is ready to restore some semblance of price power in the sector after price theories were destroyed in the past. For investors of Bharti Airtel and Vodafone Idea, the fact that the prospect of tariff increases is threatening is a shot in the arm.

No surprise then that Bharti Airtel and Vodafone Idea rally 4 percent and 7 percent, respectively.

Midcaps lead the recovery team
For the past two weeks, the mood on Dalal Street has been sour, suggesting that there might not be a pre-Diwali bash this time around. However, today’s strong return to a rocky start suggests that the party may be on course and being led by midcaps.

On Friday, when benchmark indices slipped more than 1 percent, it was interesting that midcap and smallcap stocks fell less. That resilience showed dry fruit on Friday in today’s session, as Nifty Midcap 100s surpassed nearly 2 percent gains over all peers. Continue with the party longer!

Oberoi stars
Shares of Oberoi Realty jumped nearly 7 per cent and came closer to the Rs 1,000 mark after the company reported a stellar development at its latest Goregaon, Mumbai project.

The company said it sold flats worth 787 crore Rs at its newly launched Elysian project in the western suburb of Goregaon. The project was launched on October 28 and has already generated record sales for the company.

For investors from other real estate developers, Oberoi Realty’s performance is another sign of a dream run picking pace in India’s real estate sector.

Metals get a retail hand
Retail investors today brought the music and drinks to the pre-Diwali bash on Dalal Street. The sector that benefited most from the earnings was the metal space.

The Nifty Metal index jumped over 3 percent and was only overtaken by another retail favorite, the Nifty Realty index. The gains in metal stocks were likely driven by some dip buying and short coverage, given that doubts still remain about the sector’s ability to keep the 2021 stellar show in the background of a slower China. RVPG Media