Shares of the country's largest private telecom company Bharti Airtel closed with 2.38 percent gain at Rs 363.25 on the BSE, recouping from its early losses.
Idea Cellular settled up 2.33 percent at Rs 92.40 while Reliance Communications rose by 1.72 percent to Rs 74.05.
"Surge in the stocks was a knee-jerk reaction to the draft telecom policy 2011. But, unless and until there is clarity on the 2G issue, investors will refrain from any long-term investment plan in telecom scrips," CNI Research CMD Kishore P Ostwal said.
Telecom operators would not require separate licences for operations in various parts of the country and a single licence would suffice.
Besides, cable stocks like Den Networks, Hathway Cable & Datacom and Dish TV India, too, settled with 3.34 percent, 2.38 percent and 1.14 percent gains.
The draft policy aims at converging mobile telephony, multimedia and broadcast services to offer superior experience to customers.