Telecom Stocks Outlook for the week – 11 to 15.01.2016
(Bharti
Airtel, Idea, RComm to extend losses)
( www.rupeedesk.in )
Shares
of major telecom companies are expected to continue their
subdued
run on the bourses in the coming week, but may witness a
Pullback
if the overall market sentiment improves.
We
expected Bharti Airtel Ltd revenues and earnings before interest, tax,
depreciation
and amortisation to grow modestly in Oct-Dec at 4.5% and
8.5%,
respectively, on year.
A
consolidated revenue growth of 4% on quarter and 1.8% on year is
seen
for Reliance Communications Ltd for the quarter.
In a
related development, on Monday, Eros International Plc entered into
an
agreement with Idea Cellular to provide Bollywood-related content on
the
latter's 4G network.
As
part of the deal, Idea Cellular's 4G customers will get ErosNow's
premium
services, including movies, music and TV contents. The overall
outlook
for the telecom sector is expected to remain negative in the
coming
week.