MTNL rings same old tune

MTNL is in the green today though the reason remains the same old – merger with BSNL. This talk has been going on for so long that one had stopped taking this news seriously but today, looks like the market is looking for reasons to rise and anything flimsy would do!

News is that the Govt is serious this time around and the subject is back on the discussion table. The Govt is looking at possibility of taking over mobile operations of MTNL in Gurgaon, Noida and Faridabad, where it is already offering landline and broadband services. Other possibility being explored is  BSNL’s acquiring MTNL’s  mobile operations in Delhi and Mumbai.

Like every other PSU, issues like staff salary and union opposition is among the challenges for the merger of the two firms.

MTNL rose up to an intra day high at Rs.24.25, so very close to its 52-week high of Rs.25.70.