ITI Hits 52-Week High After Govt Bars BSNL From Using 4G Chinese Equipment

Shares of government-owned ITI Ltd jumped 19.2 percent in trade on Thursday, its biggest single-day gain in 2 months and hit a 52-week high of Rs 107.90 apiece on BSE. The stock has surged 32 percent in the last two trading days, and more than doubled from its 52-week low of Rs 44.6 in March this year.

Thursday's gains come after news reports said that the Department of Telecom (DoT) has asked government-owned telecom operators Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam (MTNL) to not include Chinese gearmakers for the supply of 4G telecom equipment. Private telecom operators have also been reportedly asked to stay away from these Chinese equipment makers.

Central government-owned ITI Ltd is a manufacturer of telecommunications equipment in India. The ban of Chinese 4G equipment for BSNL will likely accelerate the company's plans to upgrade and invest in technology.

BSNL is yet to join the 4G bandwagon and the disruption on sourcing 4G equipment from China will likely delay the plans of the loss-making PSU that faces tough competition from private players.