Reliance Communications shares traded near a two-year high after the Anil Ambani promoted firm announced tariff hikes for the second time in six months.
Reliance Communications shares surged 2.5 per cent to a high of 112.80, a level last seen on April 7, 2011. The stock traded 1.5 per cent higher at Rs 111.60 as of 10.45 a.m. outpacing gains on the broader Sensex, which edged up 0.2 per cent.
Reliance Communications, India's third-biggest mobile phone carrier by customers, said on Monday it had increased voice call prices on some of its plans by about a fifth and cut promotional offers and discounts on some others by up to 65 per cent.
The move comes as mobile phone companies in India, burdened by heavy debt and facing huge payouts for airwaves, are cutting discounts to customers, effectively increasing call prices.
Reliance Communications shares have surged nearly 80 per cent since the billionaire Ambani brothers announced a Rs. 1,200 crore deal for sharing fibre optic network for their rival telecoms companies last month. This was their first business tie-up since ending a long-running feud three years ago.
The sentiment has changed because of the deal, Sharmila Joshi of Peerless Securities shares told NDTV last week.
Other Anil Ambani group stocks have also witnessed strong buying interest post the deal announcement.
(With inputs from Reuters)