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Stocks of Bharti Airtel Ltd are seen up next week ahead of its Jan-Mar earnings announcement Thursday, as the company is expected to report 2.5 times sequential rise in its consolidated net profit to 7.12 bln rupees. Bharti earnings are likely to be robust on recent tariff hikes and due to net subscriber additions during the reporting quarter.
Short covering has lifted the stock in the last two sessions and the trend is expected to continue next week, though trade is seen in range. For Reliance Communications Ltd, the outlook remains positive. Investors with long positions should exit the stock if it falls below 90 rupees next week as below that level.
Since Apr 2, when Reliance Communications signed a 12-bln-rupee optic fibre network sharing deal with Reliance Industries Ltd, the stock has risen
46.6%, aided by investors' expectations that more such deals may be in the offing. The rally in stock has also been aided by reports of possible stake sale by the company in its subsidiary Reliance Globalcom.
Aided by better-than-expected Jan-Mar results, Idea Cellular Ltd is expected to trade with a positive bias next week, but will see profit booking at higher levels of around 125 rupees. Idea's clocked 3.08-bln-rupee consolidated net profit for Jan-Mar, as against Street estimates of 2.50 bln rupees. The company announced its earnings last Thursday.
