Bharti Airtel shares up by 2.3 percent. Know why

Bharti Airtel Ltd., India's top mobile services provider, snapped an 8-day fall on news the company had inked a deal to buy out a smaller rival in a bid to expand its radio footprint.

Bharti, owned by billionaire Sunil Mittal, said it had signed a pact to purchase 100 percent stake in Augere Wireless Broadband India, which holds 20 MHz of Broadband Wireless Access spectrum in the telecom circles of Madhya Pradesh and Chhattisgarh. The buy out will help Bharti roll out value-added internet services on its brand new 4G platform, analysts say. Services such as video streaming require download speeds of between 6-10 MBPS via wireless routes.

Bharti gained 8 rupees, or 2.3 percent, to 348.75 rupees on the National Stock Exchange. where 52 lakh shares were traded versus the 5-day average of 62 lakh shares.

Bharti's price has eroded 23 percent in the past one month as several investors exited the markets in the face of a global sell-off in equities. The company's market capitalisation is down 5 percent to 1.37 lakh crore rupees over one year.

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