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Informist, Friday, Sept. 11, 2026

 

MUMBAI – Positive momentum is building in the BSE Telecommunication index, with the potential of an upside breakout in the near term, according to technical analysts. Expectations of tariff hikes are also likely to keep the momentum supported. The index ended at 3748.78 points Friday, up 1% from Thursday.

 

Sterlite Technologies and STL Networks were the top gainers among the index constituents, ending 5% higher each. However, heavyweight Bharti Airtel ended 0.3% lower. 

 

The key sectoral index ended 2% higher on week. The immediate resistance for the index is seen at 3794, and a decisive close above this level could strengthen the move towards 3900-4000. On the downside, 3634 is the first important support level, with 3554.5 providing the next cushion, an analyst at a domestic brokerage said.

 

The broader trend remains positive as the index trades well above the rising 50-day moving average of 3634, the analyst said, adding that the index is also comfortably above the 200-day moving average of 3265, which keeps the broader structure bullish. "RSI (relative strength index) stands at 60.82, indicating healthy positive momentum without entering overbought territory. There is no clear bearish divergence visible currently," the analyst added.

 

Meanwhile, telecom companies are weighing a fresh round of tariff increases over the next two quarters, as heavyweights Bharti Airtel and Vodafone Idea seek to bolster their return on investments, Business Standard newspaper reported Friday. The tariff hikes are expected before or around the planned listing of Jio Platforms, the report quoted industry executives and analysts as saying.

 

CareEdge Ratings expects tariff hikes of 10-12% in the second half of financial year 2026-27 (Apr-Mar), which could be the key catalyst for the next leg of growth in average revenue per user, improvement in profitability, and returns on the substantial capital invested in 5G infrastructure. The rating firm expects revenues of telecom companies to grow 12-14% in FY27, even as subscriber additions remain moderate.

 

"The continued rise in ARPU (average revenue per user), despite no tariff hike since July 2024, highlights the strength of ongoing premiumisation, 2G-to-4G/5G migration, rising smartphone penetration, and improving subscriber quality," Maulesh Desai, director at CareEdge Ratings, said in a report. "Notably, India's monthly data consumption of 26.7 GB per user is among the highest globally, while its ARPU of US$2.5 remains significantly lower than that of other major telecom markets. This combination underscores significant headroom for further tariff rationalisation, making another calibrated tariff hike in FY27 a key catalyst for the next phase of growth," Desai said.

 

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Following are the resistance and support levels for key telecom stocks for next week as per calculations based on their prices on the National Stock Exchange:

 

Company	Price	Week-on-week  change in %	Resistance	Support
Bharti Airtel	1831.10	(-)0.50	1859.40	1816.40
Mahanagar Telephone Nigam	24.74	(-)6.80	25.30	24.40
Reliance Industries	1257.50	(-)4.90	1273.70	1244.90
Tata Communications	1761.60	0.30	1802.00	1727.60
Tata Teleservices Maharashtra	35.60	(-)5.70	36.10	35.10
Vodafone Idea	14.97	(-)0.30	15.40	14.60
Index	Levels
Nifty 50	23398.10	(-)2.10	23575.90	23142.50
S&P BSE Sensex	74781.76	(-)2.30	75376.70	73862.70

 

End

 

US$1 = INR 95.55

 

Reported by Ashutosh Pati

Edited by Shubhayan Bhattacharya

 

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