Telecom
Stocks Outlook for the week – 12 to 16.01.2015
( www.rupeedesk.in )
Stocks of major telecom stocks are seen trading negative next week due
to sustained weak momentum seen in the sector in last few weeks.
The market will also take cues from government developments for the
spectrum auctions in February. The Department of Telecommunications is soon expected to
float the notice inviting applications for the upcoming auctions for the 900 MHz and 1,800 MHz
bands.
Stocks of frontline telecom stocks such as Bharti Airtel Ltd, Idea
Cellular Ltd and Reliance
Communications Ltd are also expected to trade negatively, with the
government's plans materialising further to impose an additional levy on telecom
companies' spectrum usage fees to fund Swachh Bharat campaign.
Yesterday the stocks of these companies fell on the news. Telecom
Minister Ravi Shankar Prasad, while addressing the media yesterday, said the idea to impose
additional levies on spectrum usage charges was at its infancy, and the details on the
corpus to be raised and levy to be imposed will be
decided by the Cabinet.
