Telecom Stocks
Outlook for the week – 20 to 24.07.2015
(Expected to trade bullish; Idea,
RComm seen positive)
( www.rupeedesk.in )
Stocks of major telecom companies
such as Bharti Airtel, Idea Cellullar and Reliance
Communications are expected to
partially recover and trade with a positive bias next week, after a
subdued performance for the past
one month.
The outlook for the telecom
sector is positive. The stocks were going through a corrective phase. But
the stocks are now showing some
positive momentum. Even sector laggard like Reliance
Communications is expected to
remain positive next week.
Trading in Idea Cellular stocks
could rise in anticipation of the company's Apr-Jun earnings on
Tuesday. Idea Cellular Ltd's
consolidated net profit for Apr-Jun is seen falling on quarter by 5% to
8.9 bln rupees. Net profit will
also be impacted as the quarter will see the full impact of the rise in
service taxes. The government has
hiked service tax rates to 14% from 12.36%%.
The recent report on net
neutrality submitted by a government appointed committee also helped the
stocks of major telecom companies
to recover. On Thursday, a government panel on net neutrality
had proposed regulating domestic
calls made through Internet-based calling applications such as
Skype, Whatsapp and Viber.