Telecom Stocks
Outlook for the week – 13 to 17.10.2014
( www.rupeedesk.in )
Stocks of major telecommunication
service providers, such as Bharti Airtel, Idea Cellular and
Reliance Communications, are seen
further down in the week ahead. Telecom stocks are likely to
be dragged by the expected
weakness in the broader indices after the release of weak Index of
Industrial Production data for
August.
Data released post-market hours
showed that India's industrial growth was at 0.4% in August,
way below the expectation of a
2.3% expansion. For the past 10 sessions, stocks of major
telecom operators have seen
sell-off, and the short-term outlook for these shares are negative.
The near-term outlook for telecom
stocks is negative, as the Jul-Sep quarter--earnings of which
will come in later this month--is
traditionally a weak one for the operators.
Any news about operators reducing
their loans will be awaited, particularly from high-debt
companies like Bharti Airtel and
Reliance Communications. Any good news on the debt front is seen driving up these counters.
