Most of the Telecom stocks have been trading firm with Mahanagar Telephone Nigam (MTNL), Idea Cellular, Reliance Communications and Bharti Airtel leading the pack of gainers. However, AGC Networks is trading weak. As per a leading financial daily, Bharti Airtel Ltd has increased tariff by 20-25% in some of its circles. As per industry experts, the company will extend this hike to other part of the country soon. This move can change the whole industry dynamics. Other major players in this sector such as Vodafone, Idea are expected to follow suit soon. Earlier, Tata Docomo had raised the tariffs in some of its circles to curb the falling margins.
Banking stocks have been trading mixed in the last two hours of trade led by Oriental Bank, Syndicate Bank and Bank of Maharashtra. However, Bank of India, Union Bank of India (UBI) and Vijaya Bank are trading weak. As per a leading financial daily, Union Bank of India (UBI), a public sector lender, has increased its benchmark prime lending rate by 0.25% to 14.5%. Earlier the company has already increased its minimum rate of lending by similar 0.25% to 10.25%. Most of the banks have raised lending rates in the light of recent policy tightening actions taken by RBI on 16th June, 2011. It should be noted that Reserve Bank of India (RBI) has already increased the key interest rates 10 times since March, 2010.