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The Bull Run in the Reliance Communications Ltd's stocks, which have nearly doubled since last month, is likely to continue next week. The stocks of Reliance Communications Ltd spiked after a 12-bln-rupee optic fibre network deal with Reliance Industries Ltd was signed on Apr 2. Investors' expectations that more such deals, including a tower-sharing agreement, may be in the offing, helped the scrip zoom. In the same period, the National Stock Exchange's 50-stock Nifty has risen just 4.2%. The rally in the stock has also been aided by reports that Reliance Communications is likely to sell stake in its subsidiary Reliance Globalcom. Investors may buy into the stock when it undergoes some correction as shareholders with the medium-term position may book profit at around 125 rupees.
Investors will also keep a close watch on the Jan-Mar earnings of the company to be announced Friday next. The company is expected to report a consolidated net profit of 1.04 bln rupees, down 1% sequentially, while consolidated revenues are seen up 12% quarter-on-quarter at 53.87 bln rupees. Stocks of Bharti Airtel, which announced its Jan-Mar earnings this week Though the company's consolidated net profit at 5.09 bln rupees for Jan-Mar, India and South Asia operations showed improvement, with net profit from the region rising 23.5% sequentially to 9.93 bln rupees, boosted by tariff revisions taken in India. On the weekly chart, Idea Cellular, which is seen, better placed than Bharti Airtel.
