Telecom Stocks Outlook for the week – 15 to 19.06.2015
(Seen
tracking broader market next week)
( www.rupeedesk.in )
Stocks
of major telecom companies, including Bharti Airtel and Idea Cellular, are
likely to remain in a range next week in absence of any sector-specific
trigger. Telecom stocks are expected to remain negative to range bound taking
cues from the bearish benchmark indices.
The
announcement of Reliance Jio Infocomm Ltd, an arm of Reliance Industries Ltd,
to launch commercial services by December may also affect stocks of major
telecom companies.
RIL
Chairman and Managing Director Mukesh Ambani told shareholders at the company's
41st annual general meeting that Reliance Jio Infocomm Ltd will be
ready to launch commercial operations in December this year. The company has
tied up with major device makers to offer competitively priced 4G devices, and
will offer a bouquet of digital services at around 300-500 rupees per month.
Telecom
stocks, which were mostly trading within a narrow range due to inherent
weakness in the sector are unlikely to rebound in near term. "Bharti
Airtel and Idea Cellular will continue to trade sideways next week. Stocks of
Reliance Communication may slide further in next week's trade.
Both
Bharti Airtel and Idea Cellular remained within range for almost a month.
"Bharti Airtel stocks hovered around the 420-435 rupees mark, while Idea
Cellular failed to cross the 180 rupees level. The trend is expected to
continue in the coming week. Bharti Airtel's expansion of the 4G network and
the decision of the Telecom Commission to send its final views on spectrum
sharing and trading guidelines to the Cabinet before the end of the month may
help the stock gain some momentum. On Thursday, Bharti Airtel launched its 4G
internet services in Ambala, city and cantonment in Haryana, making it the eighth
circle in the country to have the company's 4G internet services.
