Telecom Stocks
Outlook for the week – 22 to 26.12.2014
( www.rupeedesk.in )
Stocks of major telecom stocks
are likely to continue trading in a negative zone next week, with
the market watching out for some
key policy announcements that are expected.
Bharti Airtel and Reliance
Communications have showed continuous weakness over the past few
weeks, and this is likely to
continue until there is further clarity on spectrum auctions and
whether it will be industry
friendly.
The Department of
Telecommunications is likely to issue the notice inviting applications, or the
bid document for the upcoming
spectrum auctions in February, on Friday. The market will also
watch out for clarity on whether
the government would auction spectrum in the 2,100 MHz band,
for which the DoT has prepared
the Cabinet note for arrangement of spectrum in that band with
the defence ministry.
For the 2,100 MHz band, the
Street would watch out for sector watchdog Telecom Regulatory
Authority of India's views on
reserve price of spectrum in the said band. Stocks of Idea Cellular,
which have outperformed its peers
over the last few trading sessions, could continue trading up due to its sustained positive
momentum.
