Telecom Stocks Outlook For The Week: 26.02.2018 to 01.03.2018

Telecom Stocks Outlook For The Week: 26.02.2018 to 01.03.2018

             Equity Cash/Futures/Options Segment 

A minor rebound this week notwithstanding, telecom stocks are likely to remain under pressure next week as institutional investors stay away from the sector due to subdued financials. There is not much activity from the funds in the telecom and most institutional investors are staying away.Telecom Regulatory Authority of India last week amended the regulatory principles of tariff assessment, under which it will levy a penalty of up to 5 mln rupees if a mobile operator with significant market share is found offering predatory tariff. We expect the order to weigh on older operators who have been
facing pricing pressure due to sharply lower tariffs offered by Reliance Jio Infocomm Ltd. The S&P BSE Telecom index has declined over 10% in the last one month and more than 15% in 2018 so far, as companies in the sector, except Reliance Jio, posted dismal earnings for the December quarter. News from the World Mobile Congress in Barcelona next week may also act as a trigger for telecom stocks. The broader market may open marginally higher tracking gains in the global markets, and this may limit losses in telecom stocks.

Source : Cogencis Information Services Ltd.

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