Telecom Stock Outlook for the week – 26 to 30.10.2015
Bharti,
Idea likely to trade in negative zone
( www.rupeedesk.in )
Stocks
of major telecom companies are expected to trade in the negative territory next
week
after analysts predicted a 28% decline in Bharti Airtel Ltd's Jul-Sep
consolidated
net
profit at 11.16 bln rupees. The overall outlook for the sector is seen negative
with the
exception
of Reliance Communications Ltd which is expected to move from sideways to
negative
but decline is likely to be insignificant. During the week, the stock ended
down
7.5%
on fear that the company's performance would continue to be weak, especially
due
to
greater competition post Reliance Jio Infocomm's launch. On Wednesday, Idea
Cellular
posted a 7.1% on-year growth in its consolidated net profit for the quarter
ended
September
to 8.1 bln rupees following an in increase in volume of both data and voice
services.