MTNL shares hit new high for 3rd straight session; TTML stocks locked in 5% upper circuit too—Here is why

The shares of telecom services provider, MTNL, hit fresh 52-week high on the BSE in Wednesday's intraday trade for the third consecutive day after the Department of Telecommunications (DoT) on Monday identified 13 prominent cities for the 5G rollout.  

The shares of MTNL, a wholly-owned subsidiary of Bharat Sanchar Nigam Limited, rallied nearly 5 per cent to a new 52-week high value of Rs 40.85.  The shares of the telecom services provider hit a 52-week high of Rs 38.95 after surging by 10 per cent on Tuesday and traded on year high of Rs 35.45 on Monday

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At 9.45 am, the shares of MTNL were locked in the upper circuit and were trading at Rs 40.85, up Rs 1.90 or 4.88% on Wednesday.  

Earlier on Tuesday, Gaurav Garg, Head of Research, Capitalvia Global Research Ltd, "There may be some buzz in the telecom stocks as the Department of Telecommunications (DoT) said commercial 5g services will be rolled out in 13 cities across India." 

Stock of this telecom service provider has clocked over 180 per cent return in one year, while the shares of MTNL yielded more 310 per cent return in 2 years as on December 29, as per Stock Edge, an app to analyse NSE, BSE Data.  

Meanwhile, the shares of Tata Teleservices Maharashtra Limited (TTML) were locked in 5 per cent upper circuit on the back of development in the telecom space. TTML shares gained 4.97% to trade at Rs 187.80, up Rs 8.90 around the same time.  

Among other telecom stocks, Bharti Airtel shares were trading flat at Rs 682.80, a gain of 0.40%, while Vodafone Idea stocks were up 1.16% to Rs 13.91 per share on the BSE.

Earlier on Monday, the DoT announced that commercial 5G services will be rolled out in 13 cities in 2022. Delhi, Gurugram, Mumbai, Pune, Chennai, Kolkata, Bengaluru, Hyderabad, Chandigarh, Lucknow, Ahmedabad, Gandhinagar and Jamnagar have been shortlisted for the roll out, as per DoT.