Telecom Stocks Outlook for the week – 15 to 18.11.2016

Telecom Stocks Outlook for the week – 15 to 18.11.2016

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The downtrend in stocks of major telecom companies is seen continuing next week on concerns

over eroding profitability in the sector due to competition, and on weak broader sentiment. The

Telecom stocks may go further down by 2-3%, but the recommendation

is to buy on dips.

Bharti Airtel stock is likely to remain neutral and is the top pick among stocks in the sector. In the

broader market, benchmark equity indices yesterday closed at their lowest level in over four

months as investors were worried that a rate hike, if any, by the US Federal Reserve in December

would hit foreign inflows into domestic equities. Prospects of a rate hike by US Federal Reserve in

December may raise concerns and weigh on the stocks in the sector.

Next week, domestic stock indices are seen weak because of uncertainty in the global markets, and

the impact of the government's currency curb move. Competition in the telecom industry, triggered

by new entrant Reliance Jio Infocomm, a subsidiary of Reliance Industries, also continues to put

pressure on margins of operators like Bharti Airtel and Idea Cellular.

Incumbent telecom services companies are facing pricing pressure due to Reliance Jio, which

launched its services on Sep 5 and is offering free data until December. Most companies have cut

their tariff steeply due to the rock- bottom prices that the Reliance arm is offering after the free

services. Speculation that telecom services may be charged at 18% under the goods and services

tax regime, higher than the existing service tax of 15%, is also seen weighing on stocks in the sector.

Telecom Stocks Outlook for the week – 03 to 07.10.2016 Seen down next week; spectrum auction in focus

Telecom Stocks Outlook for the week – 03 to 07.10.2016

Seen down next week; spectrum auction in focus

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Stocks of telecommunication services companies will remain subdued next week. Concern about

Reliance Jio's free voice calls, its on going tussle with operators over points of interconnect, and the

spectrum auction starting Saturday will weigh on stocks in the sector. Seven operators, barring

Telenor India, will bid at the auction, which will have 2,355.4 MHz of frequencies on offer.

While the auction will plug crucial network gaps and open revenue streams from new geographies,

operators will have to take on massive debt to acquire frequencies. Experts said investors will focus

on the outcome of the auction before placing their bets. The trend continues to be down for the

entire sector in the near term. Stocks of Bharti Airtel Ltd, which saw some recovery recently, may fall.

There is still some pessimism left in Bharti. This week, Bharti Airtel, Idea Cellular Ltd and Reliance

Communications Ltd fell 4.0-3.1%.

Idea Cellular may see a bounce-back next week. We are yet to see a firm recovery in the stock and it

may happen sometime in the next two weeks. But the overall trend continues to be down. The

company yesterday said its shareholders had approved raising 70 bln rupees through the issuance of

non-convertible securities on a private placement basis. Reliance Communications is also seen

subdued next week.

Telecom Stocks Outlook for the week – 19 to 23.09.2016 Seen down as auction nears, RJio impact weighs

Telecom Stocks Outlook for the week – 19 to 23.09.2016

Seen down as auction nears, RJio impact weighs

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Stocks of mobile services providers are seen down next week as the market begins to price in the

pressure of the upcoming spectrum auction and also the impact of Reliance Jio Infocomm Ltd's free

services. The stock looks positive in the first part of the week but selling will be there after the initial

rise. Both heavyweights will continue to remain under pressure and investors will do well to exit on

the first bounce-back. All existing mobile services operators barring Telenor India will compete for thespectrum auction that starts Oct 1.

This (the auction) will put further pressure on the balance sheets of these companies. The capex

cycle for telecom companies never seems to end and hence it is unlikely the shares will show any

significant gains in near future. Reliance Communications share is falling next week as analysts

advise caution on its plan to merge its mobile services with that of Aircel Ltd. Moody's Investor

Service has put the company under review for a possible ratings downgrade 

Telecom Stocks Outlook for the week – 06 to 09.09.2016 May fall more, seen under pressure for 1 month

Telecom Stocks Outlook for the week – 06 to 09.09.2016

May fall more, seen under pressure for 1 month

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Stocks of telecom companies are seen down over the next week and the trend is expected to

continue for at least a month. Reliance Industries Ltd shook up the market on Thursday by

announcing the launch of its telecom venture Reliance Jio Infocomm Ltd, and its unprecedented tariff

plans. From Monday, Reliance Jio will offer its voice services for free and data packages starting at 19 rupees per day. All Reliance Jio services will be free till Dec 31.

The historical discourse metrics for the sector--voice, data, RPM (revenue per minute), ARPU

(average revenue per user), MOU (minutes of use), etc--these have become irrelevant. All bets are

off on how the industry financials shape up over the next couple of years. Top incumbents such as

Bharti Airtel Ltd and Idea Cellular Ltd will see some impact on their Jul-Sep and Oct-Dec numbers as the allure of the three-month unlimited free usage will shift users to Reliance Jio's network.

Assuming 5% impact on FY17/18 revenues, we expect 11.0% and 7.4% EBITDA (earnings before

interest, taxes, depreciation and amortisation) cut Bharti Airtel and Idea Cellular, respectively.

EBITDA margins for the incumbent tele companies could decline by 200-300 bps (basis points) in

FY18. Sector leader Bharti Airtel, arguably the best placed among existing carriers, will continue to be under pressure over the next couple of weeks.

The stock closed over 9% Thursday. However, it recovered yesterday ending up 2.6% at 318.90

rupees on the National Stock Exchange. Bharti saw some bounce back yesterday. The Sunil Mittalowned company, like its peers, announced cheaper data plans to counter Reliance Jio's tariffs. Its prepaid plans allowed customer to avail 1 GB data at 51 rupees per month for an upfront payment of 1,498 rupees, and the same quantum at 99 rupees per month for an upfront payment of 748 rupees.

Analysts, however, said its plans are not adequate to challenge those of Reliance Jio and that further

price cuts on voice and data plans were anticipated. Idea Cellular, the third largest operator, was

worst hit. The company lost over 33 bln rupees in market capitalisation as the stock plummeted

10.5% at 83.65 rupees Thursday on the National Stock Exchange. It may fall to 78 rupees on the

downside, while on the upside the stock can hit the 90-rupee mark. We expect Idea to report losses

at the PAT (profit after tax) level in FY2018 as well as FY2019.

Also, while Idea has improved its preparedness on the (spectrum) capacity front in the past couple of

quarters, we believe it needs to do a lot more. At some level, we believe Idea also needs to reassess

if it can continue with its pan-India ambitions without any equity infusion. Analysts expect Reliance

Communications Ltd to be the first casualty of the war for market share. The latest development

adds to the already-high uncertainty and challenges of valuing RCOM. Though it is expected to

rapidly lose a large chunk of customers to Reliance Jio, the company's share price may be least

affected. Investors holding Idea or Bharti should exit on the first bounce-back. Those having RCOM

should hold.

Telecom Stocks Outlook for the week – 08 to 12.08.2016 Range bound next week; Idea Apr-Jun results eyed

Telecom Stocks Outlook for the week – 08 to 12.08.2016

Range bound next week; Idea Apr-Jun results eyed

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Stocks of telecommunication companies are seen moving in a range next week. Focus will be on Idea

Cellular Ltd, which will announce its Apr-Jun earnings on Monday. The country's third largest operator by customer base is expected to report a consolidated net profit of 4.49 bln rupees, down 22% on quarter. Consolidated net sales are seen rising 2.8% on quarter to 97.33 bln rupees. Idea Cellular's quarterly number are seen under pressure due to a slowdown in volume growth, fall in margins, and huge investment incurred in rolling out 4G services across the country.

The stock is seen weak on charts. Movement will be guided by its Apr-Jun numbers. Bharti Airtel Ltd, which corrected over the past week after delivering handsome June quarter numbers, is expected to move in a narrow range. Earlier yesterday, the Sunil Mittal-promoted company launched two new

post-paid plans that have data bundled with unlimited calling. This comes in the wake of a pricing

war over data and voice as existing telecom players gear up for the entry of Reliance Jio Infocomm,

the telecom arm of Reliance Industries Ltd. Telecom majors including Idea Cellular and Vodafone

India Pvt Ltd have announced price cuts, or have launched creatively bundled packs with higher data

and voice quantum.

Telecom Stocks Outlook for the week – 18 to 22.07.2016 (Seen mixed, spectrum charge decision eyed)

Telecom Stocks Outlook for the week – 18 to 22.07.2016

(Seen mixed, spectrum charge decision eyed)

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The stocks of telecom companies are seen mixed next week, but focus will be decision over the

spectrum usage charge that is likely to be finalised soon. On Tuesday, Telecom Regulatory Authority

of India recommended a uniform spectrum usage charge, but said it is "constrained" to examine the

weighted average solution as suggested by Attorney General Mukul Rohatgi and proposed by the

Department of Telecommunications.

The authority suggested its own weighted average formula that takes into account the final bid value

of a spectrum band and technical efficiency of those airwaves. Currently, the charge is calculated

through a weighted average formula factoring different usage charge rates for spectrum acquired

at different points in time.

If accepted by the government, TRAI's formula will result in a higher payout by the industry compared to what had been proposed by the telecom department. Over the next week, telecom stocks are seen mixed with Idea Cellular Ltd expected to outperform Bharti Airtel Ltd.

Idea is looking better. The stock is trading around 100 rupees range, from where it has rebounded

many a times in the past. Bharti Airtel, which has displayed an oscillating trend over the past several

weeks, may gain next week. While Bharti Airtel slashed data rates by half for browsing between 3 am

and 5 am for pre-paid customers, Idea Cellular increased data quantum by 45% for all packs below 1

GB.

Telecom Stocks Outlook for the week - 11 to 15.07.2016

Telecom Stocks Outlook for the week 0 11 to 15.07.2016

(Seen falling as DoT demand notice underway)

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Stocks of telecom companies are seen under pressure next week, as the government is preparing to

issue demand notice to six operators for non-payment of dues. A report by the Comptroller and

Auditor General of India in March showed that telecom services providers--Bharti Airtel Ltd, Idea

Cellular Ltd, Reliance Communications Ltd, Vodafone India Ltd, Aircel Ltd, and Tata Teleservices

Ltd--collectively underreported 460 bln rupees of gross revenues in the four years from 2006-07 (Apr- Mar) to 2009-10.

The national auditor alleged that during these four years, the government incurred a loss of 125 bln

rupees in license fee and spectrum usage charge collections. Subsequently, the telecommunications

department ordered a special audit of telecom companies named in the Comptroller and Auditor

General's report.

On Thursday, the Department of Telecommunications said the report was "being vigorously examined and the process of issue of demands for the four financial years for six operators in 22 licence service areas in consonance with licence agreement is currently ongoing". On Friday, stocks of the top three listed operators ended 2.3-3.2% lower on the National Stock Exchange.

Telecom Stocks Outlook for the week – 04 to 08.07.2016 (Correction seen after post-Brexit surge)

Telecom Stocks Outlook for the week – 04 to 08.07.2016

(Correction seen after post-Brexit surge)

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The shares of telecommunication services companies are seen correcting next week after gaining in

the post-Brexit market. Telecom stocks can go for a consolidation or a near-term correction of

3-4%. Telecom shares this week gained 3.5-7.5% from their previous week's close, as investors

churned their portfolios, picking stakes in companies which have little or no exposure to Europe.

We are expecting the downward trend is seen on the charts in line with expectations for the broader

market. Sector heavyweight Bharti Airtel Ltd may fall to 355 rupees in the near-term, the analyst said.

Resistance for the stock is seen at 372 rupees. Bharti Group Chairman and Managing Director Sunil

Mittal, according to reports, has said he expects consolidation in Indian telecom sector over the next

two years that would leave up to four private players and one state-owned operator in the market.

Mittal is also reported to have said the telecom industry would face massive erosion of tariffs with the entry of Mukesh Ambani-promoted Reliance Jio Infocomm. With already lower average voice and data realisation in the country, Reliance Jio's entry is likely to erode margins for the incumbents.

Idea Cellular Ltd during its analysts' meet on Monday had reportedly said the market was large enough to accommodate the new entrant. The company said it would re-assess its strategy closer to the launch of 4G services by Reliance Jio.

Telecom Stocks Outlook for the week – 27.06.2016 to 01.07.2016, Seen mixed; sector guarded from Brexit hit

Telecom Stocks Outlook for the week – 27.06.2016 to 01.07.2016, Seen mixed; sector guarded from Brexit hit

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Stocks of telecommunication services companies are seen trading mixed next week as the sector is

considerably shielded from the volatility in European markets that will weigh on Indian stock indices.

In a historical event that is likely to have prolonged repercussions on financial markets across the

world, UK yesterday voted to exit the European Union. Based on opinion polls by a number of

international media outlets ahead of the referendum, the market had factored in a "Bremain," or UK

continuing the 43-year membership.

Results of the referendum, which showed 52% votes from 382 polling constituencies in favour of

UK's exit or 'Brexit', sent shockwaves around the world. Mirroring decline in global indices, NIFTY 50 ended down 2.20% at 8088.60 points, while S&P BSE Sensex ended 2.24% lower at 26397.71 points from their previous week's close. All telecom stocks also ended in the red on Friday's close. Telecom stocks are likely to remain range bound.

The anxiety is over the fact that businesses in Europe will halt their investment in information

technology and telecom services until there is more clarity on UK's trade policies. However, Indian

telecom majors have little or no revenue coming in from Europe. The stock may see some movement

as the company announced late Friday that the scheduled merger of its arm Airtel Bangladesh with a

subsidiary of Malaysia's Axiata Group Bhd has been postponed to late September from June earlier.

Idea Cellular Ltd is seen weak on the charts and is likely to continue its downward trend. The analyst

expected Reliance Communications Ltd and Tata Communications Ltd to rise over the next week.

Telecom stocks, however, may see some volatility as traders roll over positions to the July derivatives

contracts ahead of the expiry of June series on Thursday.

Telecom Stocks Outlook for the Week – 20 to 24.06.2016 Seen positive; Bharti Airtel may rise more

Telecom Stocks Outlook for the Week – 20 to 24.06.2016

Seen positive; Bharti Airtel may rise more

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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.

Telecom Stocks Outlook for the week – 13 to 17.06.2016 (Subdued next week; Bharti Airtel may fall more)

Telecom Stocks Outlook for the week – 13 to 17.06.2016

(Subdued next week; Bharti Airtel may fall more)

 ( www.rupeedesk.in )

The shares of telecom services companies are seen weak next week as profit booking, which dragged the market down on Thursday and Friday, is seen continuing. Shares of telecom major Bharti Airtel Ltd, Idea Cellular Ltd and Reliance Communications Ltd rose 1-2% intraday on Wednesday, a day after the Telecom Commission fixed the spectrum usage charge at 3% of the adjusted gross revenue for all spectrum bands to be sold in future auctions.

Though operators will have to pay a combination of the weighted spectrum user charge on the bands currently held and 3% charge on the spectrum acquired in future, the new policy is expected to bring down the spectrum user charge outgo for most companies. According to a Jan 8 report in a leading business daily, the merger, which is likely to conclude by July-end, will see both the companies transferring 140 bln rupees of debt each to the merged entity.

Telecom Stocks Outlook for the week – 06 to 10.06.2016 (Seen up next week; Airtel may lead gains)

Telecom Stocks Outlook for the week – 06 to 10.06.2016

(Seen up next week; Airtel may lead gains)
( www.rupeedesk.in )

The shares of mobile service providers are seen trading positive in the coming week, with sector heavyweight Bharti Airtel Ltd expected to lead the gains. Further cues will be provided by the outcome of a meeting of the Telecom Commission on Tuesday, at which the final contours of the spectrum auction will be discussed, along with the Attorney General's view on spectrum user charges.

Some clarity on spectrum user charges emerged after Attorney General Mukul Rohatgi told the Department of Telecommunications that it did not have the power to make any changes to the 1% spectrum user charge that broadband wireless access providers will have to pay for spectrum acquired in the 2010 auction.

During that auction, Reliance Jio Infocomm Ltd, the mobile services arm of Reliance Industries Ltd, won pan-India broadband wireless access spectrum. Rohatgi's statement is in response to the department seeking his view on its proposal to junk the current 3- 8% slab system in favour of a uniform 4.5% for all mobile services. Through the next week, Bharti Airtel could extend the gains of 2% it recorded this week. The company was well-positioned to maintain its market leadership position due to its integrated telecom operations, ownership of efficient spectrum assets, and ability to offer pan-India 3G and 4G services.

The share price of Bharti Airtel has outperformed peers over the past several months and is showing early signs of a fresh upward momentum in the stock, offering a trading opportunity.

Telecom Stocks Outlook for the week – 23 to 27.05.2016 (Bharti Airtel, Idea may keep trading in red)

Telecom Stocks Outlook for the week – 23 to 27.05.2016

(Bharti Airtel, Idea may keep trading in red)

 ( www.rupeedesk.in )

Stocks of Bharti Airtel Ltd, Idea Cellular Ltd, and Reliance Communications Ltd are seen continuing their bearish trend in the coming week. These stocks, which have been trading in the negative territory for the past couple of weeks, look fundamentally weak and are expected to continue to trade in the red. 

The Telecom Regulatory Authority of India has floated a consultation paper, seeking views on free data services. Comments on this regard have to be submitted to the regulator by Jun 16. This provides US-based social networking company Facebook another opportunity to market its services using the Free Basics platform. Facebook had put its plans for Free Basics in India on hold after the regulator had put its foot down on differential pricing for data services, setting a penalty of 50,000 rupees to 5 mln rupees for each day of violation.

Telecom Stocks Outlook for the week – 09 to 13.05.2016 Bharti Airtel, RComm seen up next week

Telecom Stocks Outlook for the week – 09 to 13.05.2016

Bharti Airtel, RComm seen up next week

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Stocks of telecom service providers are seen trading higher next week as investors may react positively to their recent announcements. Bharti Airtel's arm Bharti Airtel International (Netherlands) BV signed an agreement with Helios Towers Africa to sell its 950 towers in the Democratic Republic of Congo. The deal will help the company cut debt and capital expenditure. Reliance communications Ltd kick-started a price war by offering 10 GB of 4G data bundled with 150 voice minutes for 93 rupees per month.

The move is likely to free the spectrum for Reliance Jio Infocomm Ltd, as Reliance Communications is not offering any handset subsidy for the upgrades so far; thus, its code divisional multiple access users would need to invest in new 4G global systems, which could limit immediate 4G adoption.

Aditya Birla Group company Idea Cellular Ltd may spend $1.3 trln in adding data spectrum at the

upcoming auctions, expected around July. As per media reports, analysts expects Idea to cherry-pick data spectrum in Maharashtra, Kerala, Madhya Pradesh, UP-West circles, where the company has seen a sharp surge in incremental revenue market share over the past one year.

Telecom Stocks Outlook for the week – 02 to 06.05.2016 In range with positive bias next week

Telecom Stocks Outlook for the week – 02 to 06.05.2016

In range with positive bias next week

 ( www.rupeedesk.in )

Stocks of telecom service providers are seen moving in a narrow range over the next week with an

upward bias. Bharti Airtel Ltd's robust March quarter earnings announced Wednesday have buoyed

investor sentiment for telecom shares. The country's largest telecom services operator impressed the market with 15.5% sequential rise in Jan-Mar consolidated net profit and handsome operating

margins at 36.8%. Stocks of Idea Cellular, which fell as much as 8.8% yesterday before ending down 6.3% at 118.55 rupees, may bounce back in the next week. The stock fell even though the Aditya Birla Group company reported better-than-expected numbers, on concerns over risk of rising debt as increased competition is forcing the company to accelerate 4G rollout obligations.

Telecom Stocks Outlook for the week – 25 to 29.04.2016 (Bharti Airtel, Idea seen up ahead of earnings)

Telecom Stocks Outlook for the week – 25 to 29.04.2016

(Bharti Airtel, Idea seen up ahead of earnings)

 ( www.rupeedesk.in )

Stocks of Bharti Airtel Ltd and Idea Cellular Ltd are seen trading up in the coming

week as analysts expect positive Jan-Mar earnings for both the telecom service

providers. Scrip of Reliance Communications Ltd is also likely to trade in the green on

the news of company's spectrum sharing pact with Reliance Jio Infocomm Ltd. Department of Telecommunications has approved Reliance Communications request to

share 800 MHz spectrum across nine circles with Reliance Jio Infocomm and its

wholly-owned subsidiary Reliance Telecom Ltd.

The spectrum sharing would also enable faster launch of the fourth generation services

by Reliance Jio in the nine circles. The company's Indian mobile revenue is expected to

grow 3.7% on quarter and average revenue per unit is seen improving marginally to 193

rupees, on quarter. These services have been in investment mode over the past 2-3 years

and are now translating into deals.

Telecom Stocks Outlook for the week – 11 to 15.04.2016 (Bharti Airtel, Idea, RComm seen up next week)

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.

Telecom Stocks Outlook for the week – 04 to 08.04.2016 Bharti, Idea seen down on spectrum sale doubts

Telecom Stocks Outlook for the week – 04 to 08.04.2016

Bharti, Idea seen down on spectrum sale doubts

 ( www.rupeedesk.in )

Stocks of Bharti Airtel Ltd, Idea Cellular Ltd and Reliance Communications Ltd are seen trading

down next week over uncertainty around the spectrum auctions. The Telecom Commission, an interministerial panel, Monday asked the Telecom Regulatory Authority of India to reconsider its

recommendations for the quantum of spectrum to be sold, as well its reserve prices, for the upcoming

auctions. The panel wanted a review of the parameters adopted for deciding the reserve price--

currently at four times the base price of the 1800 MHz band-- of the most sought after 700 MHz

spectrum.

TRAI will respond to the apex body's comments in the next 15 days. Meanwhile, in another

development the Supreme Court Wednesday adjourned hearing on the call drop compensation matter, and will now hear telecom operators' petition, challenging TRAI's order, on Apr 5. Telecom service providers are challenging the Delhi High Court's decision to uphold a notification by TRAI mandating mobile companies pay their customers for call drops on their network. The companies' outlook on the fundamental side also looks weak mainly in anticipation of the impending launch of Reliance Jio Infocomm Ltd.

Telecom Stocks Outlook for the week - 29.02.2016 to 04.03.2016 (Seen trading sideways; investors cautious)

Telecom Stocks Outlook for the week - 29.02.2016 to 04.03.2016

(Seen trading sideways; investors cautious)

Telecom stocks are seen trading sideways in the coming week, as

investors remain cautious ahead of Union Budget 2016-17 (Apr-Mar).

Stocks from the sector recorded relatively low rollovers to the March

derivatives contracts, indicating investors remain cautious over the sector.

The telecom sector has sought the removal of 0.5% Swachh Bharat cess

on mobile services, among other demands from the Union Budget.

Companies in the sector want the Budget to provide clarity that payments

made by a telecom company to another during spectrum trading will not

attract withholding tax

Telecom Stocks Outlook for the week – 15 to 19.02.2016 (Bharti Airtel, Idea seen trading positive)

Telecom Stocks Outlook for the week – 15 to 19.02.2016

(Bharti Airtel, Idea seen trading positive)

( www.rupeedesk.in )

After weeks of decline, stocks of major telecom companies are seen

trading positive in the coming week mainly on value buying. Stocks of

Bharti Airtel Ltd, Reliance Communications Ltd and Idea Cellular Ltd

bounced back during the week and are expected to be in the green next

week as these shares have bottomed out and an uptick is on the cards.

The telecom stocks had stabilised as compared to other stocks, some

value buying was expected. However, others said that it was more of a

technical pullback as there was no major news in the market to

substantiate the bounce-back in the stocks of major telecom companies.

We are expected that the scrip of country's largest telecom operator

Bharti Airtel may trade in the range of 330-340 rupees in the coming

week. Shares of Idea Cellular are expected to cross the 150-rupee mark.

The stock has fallen over 35% in the last six months. But significant

movement is expected in shares of Reliance Communications.