At 10:40 am; the S&P BSE Telecom index, the largest gainer among sectoral indices, was up 1.85% as compared to 0.15% rise in the benchmark S&P BSE Sensex.

Idea Cellular was up 3% at Rs 109, after hitting high of Rs 112, up 6% in intra-day trade on the BSE.

According to PTI reports, telecom giant Vodafone has brought in Martin Pieters — former managing director (MD) and chief executive officer (CEO) of its Indian arm — to work on the proposed merger of Vodafone India with Idea Cellular.

Bharti Airtel was up 2% at Rs 378, hitting seven-month high of Rs 379 in early morning trade on the BSE.

The stock was close to its 52-week high of Rs 385 touched on April 28, 2016. In past one-month, it outperformed the market by gaining 18% as compared to 5% rise in the benchmark index.

According to analysts at ICICI Securities, the Indian telecom industry is in the process of shrugging off its longstanding troubles of the market being overpopulated with seven to nine players vs. three to four players running the show globally. The prospective Idea-Vodafone merger is a step in that direction and augurs well for the overall sector.

“Though Airtel would shift to the No.2 position from the leadership spot, it continues to be our preferred choice owing to the various consolidation benefits that would accrue to the company, its superior margin profile (39-41% in the Indian mobility versus 30-32% for peers) and the improving leverage situation with Airtel selling/intending to sell stake in the noncore/ unprofitable ventures and restructuring its business operations,” analysts said in company update.