Telecom Stocks Outlook for the week – 21 to 25.11.2016
Stocks of telecommunication companies are seen trading in a range with a
negative bias next week as rising competition in the market has led to growth
challenges.
The entry of Reliance Industries' telecom arm Reliance Jio Infocomm has created
several uncertainties regarding growth of domestic telecom companies. Even
though investment sentiment is seen largely weak, domestic markets are
expected to recover next week after closing at their lowest levels in nearly six
months. The stocks of telecom companies are not expected to witness significant
gain or fall during the next five sessions.
The government's move to withdraw legal tender status of 500- and 1,000-
Rupee currency notes are also seen impacting the growth of these companies.
However, the extent of this impact is yet to be measured. While utilisation of
data services has increased since the announcement of currency demonetization
on Nov 8, telecom companies have registered a fall in purchase of recharge packs
by prepaid customers due to currency crunch.
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negative bias next week as rising competition in the market has led to growth
challenges.
The entry of Reliance Industries' telecom arm Reliance Jio Infocomm has created
several uncertainties regarding growth of domestic telecom companies. Even
though investment sentiment is seen largely weak, domestic markets are
expected to recover next week after closing at their lowest levels in nearly six
months. The stocks of telecom companies are not expected to witness significant
gain or fall during the next five sessions.
The government's move to withdraw legal tender status of 500- and 1,000-
Rupee currency notes are also seen impacting the growth of these companies.
However, the extent of this impact is yet to be measured. While utilisation of
data services has increased since the announcement of currency demonetization
on Nov 8, telecom companies have registered a fall in purchase of recharge packs
by prepaid customers due to currency crunch.
Free Intraday Tips : Join Our Whatsapp No : 9841986753
