Telecom Stocks Outlook for the Week – 20 to 24.06.2016
Seen positive; Bharti
Airtel may rise more
( www.rupeedesk.in )
Stocks of telecom
companies are seen trading with a positive bias next week. The bank said Bharti Airtel is expected to
maintain its revenue market share over the next four years, despite the entry
of Reliance Jio Infocomm.
Given Bharti's improving spectrum/competitive positioning in the India telcos market, we now expect
better revenue growth from FY18. However, Bharti Airtel's African operations, which account for 20-25%
of the company's topline, may face headwinds as Nigeria's central bank has allowed its currency
naira to be market-determined. Experts said shifting to a floating rate regime may result in sharp
devaluation of the currency.
The stock looks positive
on the charts. There is bullish bias on the stock. Market is also bullish on Bharti Airtel after it
announced an alliance with Singapore Telecommunications Ltd on Wednesday to deliver high-speed
enterprise data network services in the Asia-Pacific, West Asia, Africa,
Europe, and the US. Shares of Idea
Cellular Ltd, which have been on a downward spiral in June. In the latter half of next week, telecom
stocks will track the broad market, which will move on the outcome on Thursday over UK's
referendum on staying a part of the European Union.
