www.rupeedesk.in
It will be a mixed trend for telecom stocks next week, with Bharti AirteL Ltd expected to trade higher, while Idea Cellular Ltd and Reliance Communications are expected to see some consolidation. Stocks of the three companies last week, on an average, have risen 5.9% as telecom operators have now initiated the process of increasing tariffs in order to offset the huge outgo on account of high spectrum fee. On Jan 9, Bharti Airtel raised the tariff of its 1GB 2G data plan by 25% from 100 rupees to 125 rupees. Effective Jan 2, Tata Teleservices increased voice base tariff in Delhi and National Capital region by 25%. In line with the agency's expectations, telecom companies have raised tariffs and/or tweaked plans to increase average revenue per minute. This (tariff hike) will improve their operating performance and partly offset the negative impact of the recent regulatory developments. Stocks of Idea Cellular are expected to see consolidation in the coming week and trade in the range of 103-123 rupees.
