Telecom Stocks Outlook for the week – 14 to 18.07.2014
(www.rupeedesk.in)
(www.rupeedesk.in)
Stocks of major telecom companies
are likely to remain range bound next week, though
some firms such as Reliance
Communications may remain bearish. Stocks of major
telecom firms such as Bharti
Airtel and Idea Cellular to remain range bound.
Fundamentally, we think the
street is underestimating data capex, and current
expectations already factor in a
voice price uptick. Stay cautious. However, the stocks
can get some impetus from the
Budget announcements.
The Budget provides growth
opportunities to telecom sector to provide enabling
infrastructure. Modernisation of
cities and providing high speed connectivity to build
smart cities will need roll out
of new efficient technologies such as 4G and optic fibre
deployment. Mobile banking and
the vast business correspondent model of telecom
operators will help in fulfilling
the social objective of financial inclusion.
