India’s Surging Phone Stocks Show $18 Billion Was Well Spent


India's Surging Phone Stocks

India’s mobile-phone companies are paying a record 1.1 trillion rupees ($18 billion) to keep their networks running. It’s money well spent, if the stock market is any guide. The MSCI India Telecom Services Index has rallied 14 percent from this year’s low on March 9, the only gain among 10 industries, after losing 67 percent in the preceding decade. Local funds have increased holdings to the highest in 11 months, while BNP Paribas Asset Management’s top-performing Indian stock fund is bullish on the industry.
Bharti Airtel Ltd. and Idea Cellular Ltd. are rallying on optimism the expense of securing spectrum for 20 years will pay off as the world’s second-largest wireless market grows. Net incomes at the two companies have climbed at least seven times faster than the broader market over the past six quarters as smartphones costing less than $200 spur a jump in mobile-data use. Source



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