Telecom Stocks Outlook for the week – 11 to 15.04.2016
(Bharti
Airtel, Idea, RComm seen up next week)
( www.rupeedesk.in )
Shares
of Bharti Airtel Ltd and Idea Cellular Ltd are seen trading higher next week as
analysts
expect these companies to generate higher data revenues in Jan-Mar. Shares of
Reliance
Communications Ltd are likely to gain due to Cabinet decision, earlier this week,
to liberalise telecom spectrum.
Bharti
Airtel signed a deal with Aircel Ltd to buy the latter's high-speed data
services
spectrum
for eight circles for 35 bln rupees. Reliance Communications that hit a one month
low of 48.65 rupees on Thursday after Moody's Investors Service cut its outlook
on the
company to 'negative' from stable.
Delays
in the sale of the company's non-core assets underpin its deleveraging strategy
and
have strained the company's financial and credit profile in the near term.
However,
the
recent decision of the Union Cabinet to liberalise telecom spectrum, which was allotted
to the companies outside the auction process, is seen benefiting Reliance
Communications.
The
companies can share, trade or use such spectrum to deliver different services
at a
base
price recommended by the telecom sector regulator and when an auction in same
bandwidth
happens the provisional rate will be adjusted with the market-determined
price
on a pro-rata basis.