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While the trend among telecom stocks remains positive, action among them next week is expected to be stock specific with Idea Cellular seen performing positively after having touched life-time high this week. Individual telecom stocks have performed well in the previous months as regulatory uncertainty dissipates and in the near term they are expected to see consolidation. Telecom companies are eagerly waiting the unveiling of merger and acquisition norms by the Department of Telecommunications, which is expected to be out in the current month. Telecom Secy M.F. Farooqui in an interview to Cogencis on Monday said that the new norms would facilitate merger and acquisition in the sector. Reliance Communications Ltd that mainly operates on the 800 Mhz or code division multiple access spectrum will be awaiting the revised recommendations on spectrum price and valuations from the Telecom Regulatory Authority of India. The regulator had in its recommendations on Sep 9 advised the government on putting the auction of spectrum in the 800 Mhz on hold. The telecom department has, however, asked the regulator to reconsider its view and give its revised recommendations by Oct 29. Investors are recommended to maintain long positions on the stock and it is expected to touch 195-197 rupees next week. Bharti Airtel is expected to consolidate at around the current levels.
While the trend among telecom stocks remains positive, action among them next week is expected to be stock specific with Idea Cellular seen performing positively after having touched life-time high this week. Individual telecom stocks have performed well in the previous months as regulatory uncertainty dissipates and in the near term they are expected to see consolidation. Telecom companies are eagerly waiting the unveiling of merger and acquisition norms by the Department of Telecommunications, which is expected to be out in the current month. Telecom Secy M.F. Farooqui in an interview to Cogencis on Monday said that the new norms would facilitate merger and acquisition in the sector. Reliance Communications Ltd that mainly operates on the 800 Mhz or code division multiple access spectrum will be awaiting the revised recommendations on spectrum price and valuations from the Telecom Regulatory Authority of India. The regulator had in its recommendations on Sep 9 advised the government on putting the auction of spectrum in the 800 Mhz on hold. The telecom department has, however, asked the regulator to reconsider its view and give its revised recommendations by Oct 29. Investors are recommended to maintain long positions on the stock and it is expected to touch 195-197 rupees next week. Bharti Airtel is expected to consolidate at around the current levels.
