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Telecom stocks are expected to trade in a narrow range ahead of expiry of futures and options contracts next week. Though rangebound, the stocks are expected to tail the broad market which is seen trading with a positive bias. Foreign institutional investors have shown their positive interest in the Indian equities even after the RBI (Reserve Bank of India) and Fed policy. However, volatility cannot be ruled out in the coming week as a result of expiry of December contract series.
On the broader policy front, the telecom companies will be eying the government's decision on recommendations of the Telecom Regulatory Authority of India on the spectrum usage charges. The regulator has suggested that the charge, which is currently in the range of 2-8%, should be kept at 3% of the companies' adjusted gross revenue per year.
The Department of Telecommunications is currently in discussion with the finance ministry on the issue.Industry body Cellular Operators Association of India has endorsed a uniform spectrum usage charge of 3% of adjusted gross revenue for all operators offering voice and data services in the country as suggested by TRAI.
Telecom stocks are expected to trade in a narrow range ahead of expiry of futures and options contracts next week. Though rangebound, the stocks are expected to tail the broad market which is seen trading with a positive bias. Foreign institutional investors have shown their positive interest in the Indian equities even after the RBI (Reserve Bank of India) and Fed policy. However, volatility cannot be ruled out in the coming week as a result of expiry of December contract series.
On the broader policy front, the telecom companies will be eying the government's decision on recommendations of the Telecom Regulatory Authority of India on the spectrum usage charges. The regulator has suggested that the charge, which is currently in the range of 2-8%, should be kept at 3% of the companies' adjusted gross revenue per year.
The Department of Telecommunications is currently in discussion with the finance ministry on the issue.Industry body Cellular Operators Association of India has endorsed a uniform spectrum usage charge of 3% of adjusted gross revenue for all operators offering voice and data services in the country as suggested by TRAI.
