Shares of Mahanagar Telephone Nigam Limited (MTNL) zoomed 10% in early deals on Monday amid reports that the Cabinet has cleared a financial package of nearly Rs 6,000 crore for 4G network expansion of Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL).
MTNL shares rose 10.26% to Rs 57.56 on Monday against the previous close of Rs 52.20 on BSE. Market cap of the telecom firm climbed to Rs 3,514 crore. The stock saw high volume of 9.16 lakh shares leading to a turnover of Rs 5.17 crore on BSE.
MTNL stock has a beta of 1.4, indicating very high volatility in a year.
In terms of technicals, the relative strength index (RSI) of the MTNL stock stands at 57.2, signaling it's trading neither in the overbought nor in the oversold zone.
MTNL stock is trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 200 day and 100 day moving averages. The MTNL stock fell to a 52 week low of Rs 31.24 on March 20, 2024 and a hit a 52 week high of Rs 101.88 on July 29, 2024.
According to reports, this funding is likely to support both state-owned telecom companies in strengthening and expanding their network infrastructure. Around one lakh 4G sites will be set up to improve connectivity and ensure better network services for consumers.