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After witnessing a rally of 18.8% this week, state-owned Mahanagar Telephone Nigam Ltd is expected to see a sober trade next week with gains seen limited. The sentiment over the stock has been upbeat, as the group of ministers, headed by Finance Minister P. Chidambaram, is soon expected to take up the proposal of the Department of Telecommunications for financial overhaul of MTNL. For Oct-Dec, the company had reported a net loss of 11.82 bln rupees. The net worth of the company was likely to have been eroded by now, reports quoted Telecom Minister Kapil Sibal as saying.
Reliance Communications, whose movement remained unchanged during the concluding week, is expected to reach a level of around 125 rupees, if it is able to give a breakout above 113 rupees this week. The company yesterday reported a 189% sequential rise in consolidated net profit to 3.03 bln rupees, mostly aided by reversal of provisions for business restructuring, totalling 5.50 bln rupees. Idea Cellular is expected to trade sideways with the support seen at 120 rupees and resistance at 135 rupees. Bharti Airtel, post its Jan-Mar results, is expected to trade with a bearish bias with continued uncertainty over issues such as the 3G intra-circle roaming pacts weighing on the stock.
