Telecom Stocks Outlook for the week – 15 to 19.12.2014
( www.rupeedesk.in )
Stocks of frontline telecom stocks are seen marginally
recovering from the downward trend next week, with Idea Cellular being expected to trade with
a positive bias. The sector, overall, is, however, likely to remain negative. The market is under
pressure, and correction would be seen in the telecom sector going ahead. The sector will be
negative only.
There will be buzz in the telecom stocks, as the Telecom
Commission hasrecommended a base price of 36.93 bln rupee per megahertz for the premium 900
MHz frequency band, about 23% more than what regulator TRAI had suggested for the same
for the spectrum auction in February. It has also said that price of spectrum in 1800
Mhz should be 21.91 bln rupee and 800 Mhz be priced at 36.46 bln rupee.
On Thursday, the government said it might auction
additional block of 5 MHz spectrum in the most sought after 3G band in the February spectrum
auction. Incremental spectrum will ease pressure on incumbents facing licence Renewals.
Over the last eight trading sessions, Idea Cellular has
declined by more than 12%, reflecting investors' nervousness over the approaching launch of
Reliance Jio's 4G services (in early 2015) and anticipation of a collaboration between Reliance
Communications and Reliance Jio for the same. The uncertainty over the pricing and the quantum of
spectrum to be available for the
upcoming auction also affected the stock.
