Tag: 5G

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Retail Inflation Eases to 5.88% in Nov – Top Indian Market Updates

Consumer Price Index

Here are some of the major updates that could move the markets tomorrow:

India’s retail inflation eases to an 11-month low of 5.88% in Nov

India’s retail inflation (based on the Consumer Price Index or CPI) eased to an 11-month low of 5.88% in November on an annual basis. The figure came within the Reserve Bank of India’s (RBI) tolerance band for inflation of 2-6% for the first time this year. CPI stood at 6.77% in October. The decline can be attributed to a fall in food prices, which account for almost 40% of India’s CPI basket. Food inflation for November came in at 4.67%, compared to 7.01% in Oct. 

Meanwhile, India’s factory output (measured by the Index of Industrial Production or IIP) witnessed a (-)4% contraction in October 2022.

Read more here.

OnePlus partners with Reliance Jio for 5G

Reliance Jio has partnered with global technology brand OnePlus to bring in the evolutionary standalone (SA) 5G technology ecosystem in India. As a part of the collaboration, all the OnePlus 5G devices will be powered by Jio ‘True 5G’ technology. Currently, Reliance Jio is rolling out 5G SA in Delhi-NCR, Mumbai, Kolkata, Varanasi, Chennai, Bengaluru, Hyderabad, and Pune. 

Read more here.

India’s steel output grows 5% to 10.34 MT in Nov: SteelMint

According to SteelMint India, India’s crude steel output rose by about 5% YoY to 10.34 million tonnes (MT) in November 2022. SAIL, Tata Steel, JSW Steel, JSPL, AMNS India, and RINL produced 6.28 MT of steel, and the remaining 4.06 MT came from the secondary sector. The consumption of the alloy surged 13.42% to 9.66 MT in November, compared to 8.52 MT a year ago.

Read more here.

ONGC to invest ₹2,150 crores on drilling 53 exploratory wells in Andhra Pradesh

Oil & Natural Gas Corporation (ONGC) will invest ₹2,150 crores to drill 53 exploratory wells in Andhra Pradesh. It will carry out the exploration of 50 wells in the Krishna Godavari (KG) basin in East and West Godavari districts. Meanwhile, three drillings will be carried out in the Cuddapah basin in Kurnool, Anantapur, and YSR districts.

Read more here.

TCS faces lawsuit in the US for alleged discriminatory hiring practices

Tata Consultancy Services (TCS) is facing a class action civil rights lawsuit from a former employee in the US for discriminatory hiring practices. Shawn Katz has filed a lawsuit against TCS seeking relief for alleged discrimination based on race and national origin at the US District Court for the District of New Jersey. He alleged that the IT firm discriminates against non-South Asian and non-Indian applicants and employees.

Read more here.

Dalmia Bharat to acquire Jaypee Cement for ₹5,666 crore

Dalmia Bharat Ltd’s cement subsidiary will acquire the cement and power plants of Jaiprakash Associates Ltd for ₹5,666 crores. The assets include a cement manufacturing capacity of 9.4 million tonnes (MT), a clinker capacity of 6.7 MT, and thermal power plants of 280 megawatts (MW). The new plants will take Dalmia Cement’s cement manufacturing capacity from 35.9 million tonnes per annum (MTPA) at present to 46.3 MTPA.

Read more here.

All-India electricity demand may grow 7% to 1,480 BU in FY23: Icra

Electricity demand in India is expected to grow 7% year-on-year (YoY) to 1,480 billion units (BU) in the current financial year (FY23), according to rating agency Icra. In the previous financial year (FY22), the all-India power demand was at 1,380 BU. The estimates are based on the fact that all-India electricity demand increased 10.6% YoY in the first eight months of FY23 amidst a severe heat wave in the north and central India.

Read more here.

Glenmark Pharma gets warning letter from USFDA for lapses at Goa plant

Glenmark Pharmaceuticals Ltd has received a warning letter from the US Food & Drug Administration (USFDA) for manufacturing lapses (including failure to establish required laboratory control mechanisms) at its Goa-based manufacturing plant. The warning letter summarises significant violations of Current Good Manufacturing Practice (CGMP) regulations for finished pharmaceuticals. USFDA inspected the manufacturing facility from May 12, 2022, to May 20, 2022.

Read more here.

Macrotech Developers raises ₹3,547 crores via QIP

Macrotech Developers (Lodha) has raised around ₹3,547 crores from foreign and domestic institutional investors through a Qualified Institutional Placement (QIP). This was the largest QIP by any Indian corporate this year. Capital Group, UBS, Abu Dhabi Investment Authority, and Nomura have picked up over 7.2% stake in the real estate company.

Read more here.

Tata Group plans to open 100 small exclusive Apple stores: Report

According to an Economic Times report, the Tata Group aims to open small exclusive Apple stores across India. Apple is reportedly partnering with Tata-owned Infiniti Retail, which runs the Croma store chain, for the venture. Infiniti Retail will become an Apple franchisee partner. It intends to open 100 such outlets of 500-600 sq. ft. each at malls and high-street locations.

Read more here.

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RBI Raises Repo Rate by 35 bps to 6.25% – Top Indian Market Updates

RBI
RBI

Here are some of the major updates that could move the markets tomorrow:

RBI raises repo rate by 35 bps to 6.25% 

The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) increased the repo rate from 5.9% to 6.25% (up 35 basis points). With this hike, the RBI has broken the 50-basis-point-hike trend it opted for in each of the last three policy meetings. The RBI also cut India’s GDP growth projection for FY23 from 7% to 6.8%. The central bank retained the FY23 inflation projection at 6.7%.

[The repo rate is the key rate at which the RBI lends short-term funds to commercial banks. 100 bps = 1%]

Read more here.

Indus Towers to raise up to ₹1,500 crores via NCDs

Indus Towers Ltd’s board has approved raising up to ₹1,500 crores through the issuance of non-convertible debentures (NCDs) in three rounds on a private placement basis. The company will allot 15,000 rated, listed, unsecured, redeemable NCDs of the face value of ₹10 lakh each. The funds will be utilized for the company’s growth and capital expenditure (capex) needs.

Read more here.

India’s April-November finished steel exports fall 55% YoY

India’s finished steel exports fell 55% year-on-year (YoY) to 4.3 million tonnes (MT) from April to November 2022 due to a slowdown in global demand and the decision by India to impose an export tax on some steel products. The country’s finished steel output rose 6.4% YoY to 77.7 MT during the same period, while consumption went up by 12% to 75.3 million tonnes.

Read more here.

5G services expanded to 50 towns since October 1: Ashwini Vaishnaw

Telecom operators have expanded 5G services to 50 towns across India since the launch on October 1, said Communications Minister Ashwini Vaishnaw. “No feedback/complaints have been received by telecom service providers (TSPs) for any difficulties faced by 5G users wherever the 5G network is available,” he added. TSPs (Reliance Jio, Bharti Airtel) are presently providing 5G services to their subscribers with 5G-enabled devices at no extra cost.

Read more here.

GMR Airports, NIIF announce partnership to invest in three airports

GMR Airports Ltd (a subsidiary of GMR Airports Infrastructure Ltd) and the National Investment & Infrastructure Fund (NIIF) announced a financial partnership for NIIF to invest in the equity capital of three airport projects. This includes the greenfield international airports at Mopa (Goa) and Bhogapuram (Andhra Pradesh). It will be NIIF’s first investment in an airport asset in the country and its first direct investment in Goa.

Read more here.

IIFL Securities’ online retail trading business to merge with 5paisa Capital

Discount broking firm 5paisa Capital Ltd (an IIFL Group firm) has decided to merge IIFL Securities’ online retail broking business with itself. The reorganization between the two IIFL Group entities aims to consolidate the online retail trading businesses under one single entity. After the transaction, IIFL Securities will focus on wealth management and advisory. The merger will increase 5paisa.com’s customer base by 40% to 4.7 million.

Read more here.

Dabur plans to enter the feminine care market

Consumer goods firm Dabur Ltd plans to enter India’s feminine care market. In the ₹5,400-crore sanitary napkin segment, Dabur’s new product under the “Fem” brand will compete with P&G’s Whisper and Johnson & Johnson’s Stayfree. The product will be exclusively launched on Flipkart.

Read more here.

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Editorial

5G Officially Launched in India: What Can We Expect?

After a long wait, Prime Minister Narendra Modi officially launched 5G services in India on October 1. Companies involved in the telecom, optic fiber, and network infrastructure segments are gearing up for a pan-India rollout. However, it could take a while for most of us to experience 5G on our phones. In this article, we discuss how 5G would be beneficial for our economy and what we can expect from the 5G revolution.

What are the Benefits of 5G?

The fifth generation of mobile networks won’t just mean ultra-fast internet speeds. It would bring lag-free connectivity, better coverage, and energy efficiency. Internet speeds on 5G could touch 10 gigabits per second (Gbps) at its peak, compared to the 100 megabits per second (Mbps) of 4G. Telecom operators have promised more reliability, massive network capacity, and increased availability of 5G. 

5G offers high bandwidth for quick data transfer. You’ll be able to live stream videos in better quality than before. India’s healthcare, education, automotive, defence, and gaming sectors will get a boost with enhanced augmented reality (AR) & virtual reality (VR) applications and experiences. 5G networks would also improve accessibility to mobile banking.

Jio vs Airtel vs Vi: Preparing for 5G Battle!

  • In the recent 5G spectrum auctions, Reliance Jio emerged as the top bidder with investments of ~₹88,000 crore. It bought 24,740 megahertz (MHz) of bandwidth. The company bought expensive pan-India airwaves to offer better 5G coverage quality and speed. Thus, it has a competitive advantage over rivals. Jio has also promised to offer “the most affordable 5G rates in the world” and roll out services to each corner of India by December 2023.
  • Second-largest telecom operator Bharti Airtel bought 19,867.8 MHz of airwaves worth ₹43,084 crore. It is relying on mid-band spectrum acquisitions to offer essential 5G services. Airtel has become the first telco to provide 5G networks in India. It will roll out 5G in 8 cities, including Mumbai, Delhi, Bengaluru, and Kolkata.
  • Cash-strapped Vodafone Idea (Vi) spent ₹18,799 crore to acquire 6,228 MHz of airwaves. Vi has not announced any vital 5G-related developments yet.

All telecom operators are expected to reveal their 5G plans in the coming weeks. Various reports indicate that 5G plans would be priced similarly to 4G plans currently offered in India. Others say it would be at least 10-12% higher than 4G plans in the initial stage.

What are the Key Challenges?

  • During the initial 5G rollout, telecom companies will not be able to cover the entire length and breadth of India. It will only be available in Tier-1 cities first and gradually expand to Tier-2,3 cities in a couple of years. More transmitters would be needed to cover the same area as current 4G networks.
  • Another issue is that 5G signals can be blocked by walls, glass, or trees due to their shorter wavelengths. Thus, you may not get good signals inside a building or basements. 
  • The high cost of network infra and spectrum could nudge telcos to levy a premium for 5G services. Price-sensitive Indian consumers may be reluctant to adopt the technology.
  • Most 5G smartphones available today tend to consume more battery as it keeps switching between 4G and 5G. Top mobile brands will need to invest in new battery technologies.

The Way Ahead

Over the past year, smartphone brands have advanced swiftly and launched a wide range of 5G smartphones. But if you’re buying a 5G phone now, you may be paying a premium for a feature that you can’t use for at least a year. Moreover, entities involved in the 5G rollout would have to tackle issues such as limited signal range and cybersecurity concerns.

The launch of 5G will pave the way for new economic opportunities and benefits for Indian societies. It will support innovations and transform our country into a more digitally empowered and knowledgeable economy. As per reports, the cumulative economic impact of 5G on India is estimated to reach a whopping $450 billion by 2035, provided that we have a smooth rollout.

 In an early edition, we discussed how we can profit from this new revolution in the world of networking. You can read it here!

 Are you excited for the arrival of 5G in India? Let us know in the comments section of the marketfeed app!

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RBI Hikes Repo Rate by 50 bps to 5.9% – Top Indian Market Updates

Here are some of the major updates that could move the markets on Monday:

RBI hikes repo rate by 50 bps to 5.9%

The Reserve Bank of India (RBI) has hiked the repo rate by 50 basis points (bps) to 5.90% to control high inflation rates. This is the fourth straight increase in the current cycle. The RBI has now raised rates by a total of 190 bps since its mid-meeting hike in May 2022. The central bank has lowered India’s real gross domestic product (GDP) forecast for FY23 from 7.2% to 7%. It has also maintained the consumer price index (CPI) inflation forecast for FY23 at 6.7%

Read more here.

Akasa Air partners with RateGain for dynamic allocation of airfares

Akasa Air has partnered with RateGain Travel Technologies Ltd for gathering real-time air travel information that will help the airline in deciding dynamic fares. RateGain said its AI-powered platform, AirGain, provides the airline’s revenue and pricing teams with the most accurate and reliable market insights to build a competitive pricing strategy. It provides real-time competitor insights across channels to reduce disparity and revenue losses.

Read more here.

HDFC raises lending rate by 50 bps

HDFC Ltd hiked its lending rate by 50 basis points (bps) after the Reserve Bank of India (RBI) raised the benchmark interest rate to curb inflation. The move would increase equated monthly installments (EMIs) for housing loans by the firm. HDFC has undertaken seven rate hikes in the last five months.

Read more here.

PM Modi to launch 5G services on Saturday

Prime Minister Narendra Modi will launch 5G services in India tomorrow during the inauguration of the sixth edition of India Mobile Congress (IMC-2022). Mobile operators plan to commence the commercial rollout of 5G after that. Reliance Jio and Bharti Airtel have announced plans to start 5G later in October, and metro cities will be provided with services by Diwali.

Read more here.

Inox Leisure opens multiplex theater in Srinagar

Inox Leisure Ltd has commenced commercial operations of a multiplex cinema theatre in Srinagar, Jammu & Kashmir. The multiplex consists of three screens and 522 seats. INOX is now present in 74 cities with 165 Multiplexes, 705 screens, and a total seating capacity of 1,57,290 across India.

Read more here.

LTTS partners with Qualcomm to provide solutions for 5G private networks

L&T Technology Services Ltd (LTTS) has extended its collaboration with US-based chipmaker Qualcomm Technologies to deploy end-to-end solutions for the global 5G private network industry. LTTS will establish an engineering center of excellence in California with Qualcomm Technologies’ support to accelerate the adoption of 5G private wireless networks.

Read more here.

Vi partners with CareGame to launch 5G mobile cloud gaming in India

Vodafone Idea Ltd has partnered with Paris-based gaming technology company CareGame to launch 5G mobile cloud gaming in India. The company said that with 5G’s low latency technology, the cloud gaming industry is expected to democratise even further. Android and iOS users will be able to experience high-quality mobile gaming across popular genres without downloading them.

Read more here.

Dilip Buildcon emerges as lowest bidder for ₹723 crore project

Dilip Buildcon Ltd was declared as the lowest (L-1) bidder for Phase 2 of the Ahmedabad Metro Rail project in Gujarat. The project entails the construction of 7.5 kilometers of elevated viaduct and seven stations from Sector-1 to Mahatma Mandir. The cost of the project (excluding GST) is expected to be ₹723.45 crore. 

Read more here.

India’s core sector growth slows to 3.3% in August

The output of eight core infrastructure sectors grew 3.3% in August 2022— the lowest in nine months. The production growth of core sectors stood at 12.2% in the year-ago period. Output growth of eight infrastructure sectors (coal, crude oil, natural gas, refinery products, fertiliser, steel, cement, and electricity) was 9.8% during April-August of FY23, compared to 19.4% a year ago.

Read more here.

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SpiceJet Calls for 10-15% Hike in Airfares – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

SpiceJet to hike airfares up to 15% on fuel, forex costs

SpiceJet Ltd has called for a 10-15% hike in airfares to counter high fuel costs and a weak rupee. Operating costs have increased to unsustainable levels. The airline’s MD Ajay Singh noted aviation turbine fuel prices have increased by more than 120% since June 2021. He has called on the federal and state governments to cut taxes.

Read more here.

IRB Infra’s arm achieves financial closure for Rs 6,538 crore expressway project in UP

Meerut Budaun Expressway Pvt. Ltd, a wholly-owned subsidiary of IRB Infrastructure Developers Ltd, has achieved financial closure for a Rs 6,538-crore project in Uttar Pradesh. The Ganga Expressway Group-1 is a greenfield project that will be carried out under Build, Operate, and Transfer (BOT) mode. A consortium of lenders extended financial support of Rs 2,659 crore for the six-lane greenfield expressway corridor of 129.7 km.

Read more here.

Glenmark Pharma launches asthma drug

Glenmark Pharmaceuticals Ltd has launched a novel fixed-dose combination (FDC) drug for patients with uncontrolled asthma. It will be sold under the brand name Indamet. The drug will help manage uncontrolled asthma by improving lung function, better symptom control, and reducing exacerbations.

Read more here.

Dredging Corp secures maintenance contract worth Rs 250 crore

Dredging Corporation of India Ltd has secured a yearly maintenance contract worth Rs 250 crore for Mumbai and the JNPA navigation channel. It includes dredging of ~20 million cubic meters. The company is aiming at its highest ever turnover of Rs 1,000 crore for the financial year 2022-23 after the extension of the contract by Jawaharlal Nehru Port Trust (JNPT).

Read more here.

TCS partners with QIAGEN for digital transformation

Netherlands-based QIAGEN has selected Tata Consultancy Services (TCS) as the strategic partner for its cloud transformation journey.  QIAGEN is a leading global provider of sample-to-insights solutions in life sciences and molecular diagnostics. TCS will assist QIAGEN with its deep contextual knowledge of the company’s infrastructure, applications, and systems.

Read more here.

Lockdown in China may have an adverse impact on sales outlook in FY23: Tata Motors

In its Annual Report, Tata Motors Ltd stated that the recent lockdowns in parts of China due to the spread of Covid-19 are adversely impacting its supply chains. Suppliers are unable to produce or deliver products to them. The automaker also said it is witnessing a temporary decline in demand. They are anticipating a severe impact on its sales outlook in FY23.

Read more here.

ICICI Bank hikes FD interest rates

ICICI Bank has raised its interest rates on fixed deposits (FD). The interest rates on amounts below Rs 2 crore have been increased effective from June 16, 2022. The bank now offers an interest rate between 2.75% to 5.75% for tenors from 7 days to 10 years. Term deposits with a maturity of 185 to less than one year now pay 4.60%. Those with a maturity of one year to two years will fetch 5.30% interest.

Read more here.

5G network rollout likely in August: Telecom Secretary

Telecom secretary K Rajaraman said 5G rollout is expected to begin in August once the auctions are conducted in July. On Wednesday, the Union Cabinet cleared the 5G spectrum auctions after accepting the spectrum reserve prices recommended by the telecom regulator. Around 72 GHz of airwaves will be placed for auction to rollout 5G services in India. The auction will take place from July 26.

Read more here.

Wipro partners with Eros Investments to scale AI & ML-based content localisation solution

Wipro Ltd has partnered with Eros Investments to evolve and scale an Artificial Intelligence (AI) and Machine Learning (ML)-based content localisation solution. The solution will automate the time-consuming process of subtitling and dubbing with near human-level accuracy. It will drive significant cost and time savings for global media organizations and direct-to-consumer over-the-top (OTT) streaming platforms.

Read more here.

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5G Spectrum Auction Likely In Early June – Top Indian Market News

5G Spectrum Auction Likely In Early June: Ashwini Vaishnav

The government is planning to hold a 5G spectrum auction in early June, as per telecom minister Ashwini Vaishnav. The minister stated that the Department of Telecom is on track to meet its deadlines and that the process to solve industry concerns about spectrum price is underway. TRAI has seconded a massive auction proposal worth over Rs 7.5 lakh crore for over 1 lakh megahertz spectrum, in case the government allocates it for 30 years and Rs 5.07 lakh crore if it is for 20 years. 

Read more here. 

Canada-based Sagen picks a 31% stake in India Mortgage Guarantee Corporation.

Sagen, a Brookefield subsidiary and Canadian mortgage insurer, is acquiring a 31% share in India Mortgage Guarantee Corporation (IMGC). The deal’s value was not disclosed, and it would be completed subject to legislative and regulatory approvals. According to a public statement, IMGC will use the new funds to expand its business and improve its operational and technological capabilities. IMGC was set up in 2008 as India’s first mortgage guarantee company(MGC). The company has since received investment from  National Housing Bank, International Finance Corp (IFC), Asian Development Bank, and Enact Holdings Inc.

Read more here.

P&G Hygiene and Health Care Q3 Results: Profit Up 4.6% to Rs 102.85 crore.

Procter & Gamble Hygiene and Health Care Ltd recorded a 4.59% increase in net profit to Rs 102.85 crore in the third quarter ended March 2022Rs 98.33 crore last year. Revenue from operations increased by 28.11% to Rs 973.26 crore, up from Rs 759.66 crore the previous year. Total expenses were up 28.36% at Rs 828.19 crore, against Rs 645.18 crore in the previous year. 

Read more here.

SBI Life Q4 Results: Profit advances 26% YoY to Rs 672 crore

SBI Life Insurance recorded a 26.27% year-on-year (YoY) increase in net profit to Rs 672.15 crore, from Rs 532.30 crore the previous quarter.  Net premium income increased by 12% year on year to Rs 17,433.77 crore, up from Rs 15,555.74 crore the previous quarter. In the quarter under review, total income increased by 2.5% to Rs 21,427.88 crore, up from Rs 20,896.70 crore the previous year.

Read more here.

Vedanta Q4 Results: Profit declines 10% to Rs 5,799 crore YoY

For the current quarter Q4FY22, Vedanta recorded a 4.8% year-on-year (YoY) reduction in net profit standing at Rs 7,261 crore. The business had a net profit of Rs 7,629 crore in the same period the previous year. Revenue from operations increased by 41.14% to Rs 39,342 crore, up from Rs 27,874 crore in the previous quarter.

Read more here.

TVS ties up with Bike-Taxi Platform Rapido

TVS Motor Company and Rapido, a bike-taxi platform, have established a strategic partnership. Both TVS and Rapido signed a memorandum of understanding (MoU) to allow them to capitalize on their synergies in the mobility industry. The partnership will cover both two-wheelers and three-wheelers in both ICE and EV segments. 

Read more here

Viacom18 to get an investment worth ~$2 billion

Viacom 18 Media Private Limited is an Indian joint venture between Reliance-owned TV18 and US-based media company Paramount Global. Viacom18 will receive a Rs 13,500 crore ($1.8 billion) investment from Bodhi Tree Systems – run by James Murdoch and Uday Shankar, a former head of Walt Disney India. Reliance Projects & Property Management Services Limited, a wholly-owned subsidiary of Reliance Industries, will invest another Rs 1,645 crore. Paramount Global shall continue to be a shareholder and supply its premium global content to Viacom18.

Read more here

World Bank approves $47 million for India’s Mission Karmayog

The World Bank Board of Executive Directors approved a $47 million project today to support the Government of India’s Mission Karmayogi, a national program to build civil service capacity, said the bank in a statement. 

Mission Karmayogi is a program aimed to modernize thinking and approach, improve human resource management practices in the government, and improve the skillset of the millions of civil servants across the country. 

There are nearly 18 million civil servants employed across India, with approximately two-thirds at the state government and local authority levels. While India has steadily improved its performance over the past decade, through the implementation of Mission Karmayogi the Government aims to make the country’s civil service force more future-ready and capable of meeting twenty-first-century challenges, the statement further said. 

Read more here.

PNB Housing Finance Q4 Results: Net Profit up 34% to Rs 170 crore

PNB Housing Finance report a 34% rise in consolidated net profit at Rs 170 crore compared with Rs 127 crore, the previous year. This was the case even as sales declined 18.52% YoY to Rs 6195.93 crore. Net Interest Income declined 37% QoQ to Rs Rs 377 crore compared to Rs 593 crore. While Gross NPA stood at 7.61% of loan assets while the net NPA ratio stood at 4.49%.

Read more here.

Tata Power to set up 5,000 EV charging points across Maharashtra

Tata Power has partnered with Maharashtra’s National Real Estate Development Council (NAREDCO) to install up to 5,000 electric vehicle charging outlets across the developer properties of NAREDCO’s members. The two have signed a Memorandum of Understanding(MoU). Through Tata Power’s EZ Charge mobile app, EV owners across members’ properties will enjoy 24×7 vehicle charging, monitoring, and e-payments services.

Read more here. 

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Editorial

With 5G Spectrum Rolling In, Here’s Where You Should Invest

“Jio will pioneer the 5G revolution in India in the second half of 2021”, said Mukesh Ambani at the Indian Mobile Congress(IMC) in December last year. With Jio as the torchbearer, 5G is expected to roll out soon in our country. Jio has said that instead of importing technology, it is building its in-house 5G technology under ‘Make In India’ and ‘Atmanirbhar Bharat’. Other network providers like Airtel, Vodafone-Idea, and BSNL will follow the trail.

The 5G technology will be a revolution for the world of networking. It will fuel market opportunities in India. Companies involved in telecom, optic fiber, technology, infrastructure, and much more. The question is, how do we profit off this revolution? Where should one invest to stay with the 5G wave? Let Us Find Out.

Sectors to Benefit

The 5G infrastructure will need resources from multiple sectors. For convenience, we have classified the sectors as follows:

  • Power
  • Tower Infrastructure
  • Cabling and Networking 
  • Mobile Service Provider

Power

5G Network is going to be a power-intentive project. 4G itself hasn’t managed to penetrate the rural areas due to the lack of availability of power and infrastructure in those areas. This is when Power Grid Corporation of India(NSE: POWERGRID) comes into the picture. NTPC and Adani Transmission can be additions. Adani Transmission(NSE: ADANITRANS)

Whenever there is a power outage, the diesel-generators would kick in to ensure seamless transmission. So far, Mahindra Powerol has majorly supplied diesel-generators to telecom majors like Reliance Jio, Indus Towers, Bharti Infratel, Viom Networks, American Tower, Telesonic Networks, Etisalat, Ooredoo, Tata Tele, Vodafone, Nokia, BSNL, and MTNL across India and globally. Cummins India(NSE: CUMMINSIND) is another major generator manufacturer.

Tower and Infrastructure

With 172,094 towers and 314,106 co-locations, Indus Towers is a major tower manufacturer that provides services to almost all telecom providers in the country.  Indus Towers was merged with Bharti Infratel. Indus Towers can expectedly see a spike in profits once 5G starts rolling out. Indian Telephone Industries Limited(NSE: ITI) is another central-government owned company that manufactures a range of telecom equipment.

Tech Mahindra(NSE: TECHM) is also foraying into the 5G world. Tech Mahindra in partnership with CISCO will provide network infrastructure assessment and consultancy services for 5G. It states that it also has the technology to build a full-fledged 5G infrastructure.  

Cabling and Networking 

Sterlite Technologies(NSE: STLTECH), provides FTTH (fiber-to-the-home) services. An example of FTTH is JioFiber. Sterlite had bagged a huge order from Reliance Jio for the same in November 2018. Sterlite CEO Anand Agarwal, in December 2020, said that the company is planning to spend Rs 300 crores to increase its capacity for optical fiber cables from 18 million to 33 million fiber kilometres. He also said that the company is planning to hire 300-400 people this fiscal to fuel the 5G project for the company.  Sterlite is slowly shifting space from being just a fiber optic cable company to a tech company. In December 2020, Sterlite launched a 5G indoor small cell called – ‘Garuda’. To Know More, Click Here.

HFCL or Himachal Futuristic Communications Ltd(NSE:HFCL) is also working with Jio to lay cables for their FTTH services. It is the largest manufacturer of FTTH cables in India with close to 6 lakh km per annum under its cover


Tejas Networks(NSE: TEJASNET) is another major company working at providing hardwares, tools and services along with consulting in 5G. To know more about what the company has to offer, check out their website over here.

Reliance Jio owns a majority stake in DEN Networks(NSE: DEN) and Hathway Cables(NSE: HATHWAY) which also deal in fiber optic-based services along with telecommunications and cable networking.

Service Providers

For 5G, Reliance Jio will be at the front of the race. Other telcos like Vodafone-Idea and Bharti Airtel are stuck in a financial crunch and are tied up by the spectrum dues worth thousands of crores to be paid to the Government. However, their improving financial positions and rebranding in the case of Vodafone Idea(to VI), has made the future a little optimistic for the companies. It won’t be before long that Vodafone-Idea and Airtel will also have their hands on the 5G spectrum. Airtel has been testing out 5G on their 4G spectrum, but this is not with real 5G speeds, rather just more faster 4G.


Conclusion

Unlike the US, India does not have stocks that are fully focused on 5G tech. As India comes out of the COVID-19 pandemic and the GDP growth rate normalizes, businesses get back to normal, you can expect more companies to get involved in the 5G project. From an investor’s perspective, one should look for those stocks that go into making ‘Network Infrastructure’. Areas like optic fibres, network cables, telecom consulting firms, companies making generators, tower infrastructure, and steel. Reliance Jio can be the focal point since it is expected to be the first company to roll in 5G in India.  

5G is going to be a long game, yet a game-changer. The 5th generation of telecommunication won’t just mean speed, it will mean a lot more than that. The 5G will bring with it a lot more like low latency, higher coverage, greater connectivity, and efficiency. 4G got along with it, Smart TVs, Smart Homes, Smart Speakers, and even Auto Driven Cars. Ever imagined what 5G with itself on the way?

Let us know about which stocks you think may benefit from 5G in the comments down below.

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Reliance Jio seeks spectrum for 5G trials, plans to sell overseas

Reliance Jio has sought spectrum in certain frequencies from the Department of Telecom for holding trials of the latest 5G technology, according to sources. The company’s wholly-owned US-based subsidiary Radisys has already started selling some of the 5G solutions to foreign companies.

Reliance Jio on July 17 requested for 800 megahertz of frequencies in the 26 gigahertz (GHz) and 24 GHz band as well as 100 Mhz in 3.5 GHz band for running field trials in “urban centres like Delhi and Mumbai“.

The company has sought spectrum frequencies between 26.5 – 29.5 GHz and 24.25-27.5 GHz band. The auction for these high-frequency bands is expected to be held next year. UN body International Telecommunication Union approved 5G standards for 26 gigahertz band in November last year while the standards for other bands are yet to be decided.

In its pitch for starting trials in higher spectrum band, Jio in the letter has said that the US, South Korea, Japan etc have started working in 28 GHz band and some other countries in 26 GHz band and therefore it wants to run trials of its 5G technology before selling it abroad.

In the 43rd annual general meeting, Reliance Industries Limited Chairman Mukesh Ambani had said that Jio has designed and developed a complete 5G solution from scratch. They also want trails in these bands should start in India to make India “Aatmanirbhar“.

In conclusion, Reliance Jio has made it clear that it is just starting out and will soon cater to domestic and foreign markets through its aggressive approach be it towards fundraising in order to clear debt or introducing cutting edge technology like 5G to emerging markets.