Telecom stocks
outlook for the week – 24 to 28.11.2014
Stocks of major telecom companies
are seen range bound next week taking cues from stockspecific
development in the absence of any
broader sector-specific trigger.
Telecom stocks are going to
exhibit mixed trends next week, with stocks of Idea Cellular
expected to continue its positive
run, while those of Reliance Communications and Bharti Airtel
may remain as underperformers.
Reliance Communications was trading with a negative bias last
week as well. Tata Communications
scrip is expected to trade positive.
The government's decision to hold
another round of auction by May 2015 for 3G spectrum may
also have a bearing on the
movement of telecom scrips in the week ahead. Telecom Regulatory
Authority of India had
recommended that the auction should be conducted only when there is
enough spectrum. The telecom
operators, backed by TRAI, had argued that the auction should
not be held till the government
is able to find enough spectrum.
Though the government had made it
clear that spectrum for 2G band would be auctioned only in
February, the decision to put
additional blocks of spectrum under the hammer in May is likely to cheer private telecom operators
who are facing spectrum crunch.
