Telecom stocks ring loud as Jio raises tariffs

Shares of telecom shares jumped as Jio has raised the tariffs.

Reliance Industries' shares rose as much as 2.3 per cent to a record high. Bharti Airtel jumped as much as 2.4 per cent to the highest in over eight years. Idea Cellular climbed as much as 4.8 per cent, while Reliance Communications gained as much as 3 per cent.

Shares of telecom companies rose after Reliance Industries Ltd's telecom arm,

Jio, had raised tariffs last week, signalling more pricing discipline in the sector.

Among steps, Jio has shortened the time period for its Rs 399 ($6.13) special data plan to 70 days from 84 days.

Deutsche Bank says Jio's action implies a “progressively normalisation of sector pricing". Jio's entry had sparked cutthroat competition in telecom sector, eroding profitability.