Voda Idea gets Nuvama upgrade, but Bharti Airtel remains in numero uno spot. Here’s why

Vodafone Idea’s successful follow-on public offer (FPO) is set to change the telecom sector dynamics in favour of operators who have ceded their ground first in favour of the government and then to the subscribers over the last decade. The stock gets a rating upgrade from Nuvama with a hike in price target, but Bharti Airtel retains the numero uno spot among the trio, which also comprises the largest play in Reliance Jio Infocomm.

Nuvama Institutional Equities which finds the sector at an inflection point opines that it will likely benefit from a chain of events including fund infusion in debt-ridden Vi, the likelihood of tariff hikes by operators, and government support.