Telecom infra stocks end on mixed note after govt hikes customs duty

New Delhi: Telecom infrastructure stocks ended with a varied performance on Tuesday following the announcement by the government to raise the basic customs duty on certain telecom equipment to 15 percent.

Shares of HFCL dropped by 4.21 pc to close at Rs 112.55 on the BSE, while Vodafone Idea fell by 3.84 pc to Rs 15.28, Tejas Networks declined by 3.15 pc to Rs 1,273, and ITI slid by 2.28 pc to Rs 296. The stock price of Bharti Airtel decreased slightly by 0.06 percent to end at Rs 1,463.65 per share on the market.

Conversely, Indus Towers' stocks surged by 3.06 pc to close at Rs 434.40, Kavveri Telecom Products increased by 2 pc to Rs 30.11, Shyam Telecom went up by 1.95% to Rs 14.64, ADC India Communications rose by 1.89 pc to Rs 1,845, and Tata Communications saw a 0.16 pc rise to end at Rs 1,789.15 on the BSE. The BSE Sensex, comprising 30 shares, fell by 73.04 points or 0.09 pc to end at 80,429.04.

During the unveiling of the Union Budget for the fiscal year 2024-25, Finance Minister Nirmala Sitharaman announced a 5 pc hike in import duties on motherboards, also known as printed circuit boards, with the aim of promoting local production of telecom equipment. At the same time, the share price of Dixon Technologies dropped by 3.64 percent, ending at Rs 10,941.95 following Sitharaman's budget announcement to reduce import taxes on mobile phones, chargers, and certain components used in handset production.

Syrma SGS Technology's stocks fell by 2.29 pc to close at Rs 459.85 per share on the BSE. With domestic production tripling and exports of mobile phones increasing nearly 100 times in the past six years, the Indian mobile phone industry has reached a level of maturity, according to her.

Sitharaman stated that she is now suggesting a decrease in the BCD on mobile phone, mobile PCBA, and mobile charger to 15 percent for the benefit of consumers. Previously, the value added tax on cell phones, chargers, and motherboards was 20 percent.