On Thursday, government owned, ITI recorded a jump of 19.2% in trade. It is the biggest single-day gain of ITI in two months and hit a 52-week high of Rs 107.90 apiece on BSE. The stock has increased in last two trading days. It has also more than doubled from its 52-week low of Rs 44.6 in March this year.
This development happened after news reports said that the Department of Telecom (DoT) has asked telecom operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) to not include Chinese gear makers for the supply of 4G telecom equipment. The private telecom companies have also been asked to stay away from Chinese equipment makers.
Central government-owned ITI is a manufacturer of telecommunications equipment in India. The ban of Chinese 4G equipment for BSNL will likely accelerate the company’s plans to upgrade and invest in technology.
BSNL is yet to join the 4G bandwagon and the disruption on sourcing 4G equipment from China will likely delay the plans of the loss-making PSU that faces tough competition from private players.
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