Telecom
Stocks Outlook for the weak - 05 to
09.May.2014
Telecom
stocks are expected to trade sideways next week with a positive bias as major
companies
reported strong results for Jan-Mar and as regulatory overhang continues to
wane.
Yesterday,
ratings agency Moody's Investors Service, in a statement, said it maintains
stable
outlook on the ratings of Bharti Airtel on account of the company's strong
financial
result
for the year ended March 2014. Bharti Airtel, which declared its earnings
Tuesday,
recorded
89.1% on year rise in Jan-Mar consolidated net profit to 9.62 bln rupees,
meeting
Street estimates. Stocks of the company are expected to trade with an upward
trend
in the coming sessions, while the current decline in stock prices is more of a
correction,
In
the long term, the underlying bias for both Idea Cellular and Bharti Airtel is
seen
strong
as regulatory roadblocks for both the companies are gradually abating.
On
Tuesday, the Telecom Disputes Settlement and Appellate Tribunal allowed 3G
intracircle
roaming
pacts among operators, giving respite to Bharti Airtel Ltd, Idea Cellular
Ltd
and Vodafone India Ltd. The telecom department had levied fine of 3.5 bln rupees
on
Bharti Airtel and 3.0 bln rupees on Idea Cellular for entering into 3G
intra-circle
pacts.
The penalty now stands nullified after the TDSAT verdict.
Reliance
Communications has been the weakest among the three listed telecom
companies
this week and is expected to trade with a negative bias next week due to weak
Jan-Mar
earnings.(REGISTER FOR LIVE TRIAL TIPS CURRENCY / COMMODITY / EQUITY / OPTION / FOREX, Click Here: http://rupeedesk.in/rupeedeskfree-calls )
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