Telecom stocks such as Vodafone Idea, Indus Towers, MTNL, and Bharti Airtel were in focus following reports citing that the Union Cabinet approved waiver of bank guarantees for telecom operators on spectrum purchased before 2022.

Telecom stocks witnessed a sharp upsurge in early morning trade on November 26, amid reports that the Union Cabinet approved the waiving of bank guarantees for telecom operators. Vodafone Idea shares jumped 15% while MTNL stock gained 9%.

The Union Cabinet on Tuesday announced a significant relief measure for the telecom sector companies, which is the waiver of bank guarantees (BGs) for spectrum acquired in auctions held before 2022 in order to ease the financial burden on telecom operators in India.

Telecom stocks such as Vodafone Idea, Indus Towers and MTNL surged in early trade on Tuesday, following reports citing that the Union Cabinet approved waiver of bank guarantees for telecom operators on spectrum purchased before 2022.

Vodafone Idea 's shares jumped an impressive 18.6% to hit a day's high of ₹8.28, while Tata Teleservices surged 13% to touch ₹78.11. Other telecom stocks also witnessed strong gains with Indus Towers rising 5.

Vodafone Idea is expected to submit BGs totaling to Rs 24,600 crore, while Reliance Jio’s annual BG requirement from previous auctions is at Rs 4,000 crore, while Airtel’s is Rs 3,000 crore.