Telecom stocks Outlook for the week – 30.06.2014 to 04.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Telecom companies are likely to
follow the broad markets next week with no sectorspecific
impetus in the offing. Telecom
companies are likely to be in line with the broad
markets in absence of any sector
specific news or trigger. However, some telecom
companies -- Bharti Airtel, Idea
Cellular and Reliance Communications -- are likely to
hold on to their last week's
positions.
Overall, we remain optimistic on
Bharti as it has fortified spectrum holdings and
mitigated renewal risk to a large
extent; although impending launch of Ril Jio (Reliance
Jio) and its data strategy remain
the key concern, current valuations adequately factor
such risk and we retain buy on
both Bharti and Idea. We expect to be tabled on Jul 10 is,
may give some impetus to the
telecom companies in the long term.
On Jun 23, Bharti Airtel signed a
definitive agreement with Loop Mobile to acquire the
latter's operations in Mumbai. On
Jun 24, Reliance Communications raised 61 bln rupees
via share sale to institutions
and a preferential issue of warrants to promoters. Both had
been factored in by the market.
