Telecom Stocks Outlook for the week – 29.06.2015 to 03.07.2015
Seen
a mixed trend
( www.rupeedesk.in )
Stocks
of major telecom companies that have been trading within a narrow range for the
past two weeks are expected to show a mixed trend next week, with sector leader
Bharti Airtel turning negative and Reliance Communications gaining some
positive momentum. Bharti Airtel would face some resistance at higher levels
and is expected to trade with a negative bias, while Reliance Communications is
likely to remain positive. The rest of the telecom stocks are expected to
remain range bound, taking cues from the benchmark indices that are expected to
move sideways.
Domestic
indices are likely to consolidate due to uncertainty over the Greece crisis and
expectations that a better-than-expected monsoon may lead to a rate cut by the
Reserve Bank of India. The telecom stocks are unlikely to rebound in near term
due to weakness in the sector. The stocks of telecom firms have remained mainly
range bound for the last many weeks. Stocks of Idea Cellular, which failed to
consolidate even after increasing data charges, is likely to trade sideways.
Reliance
Communications has seen some positive movement in their stock after the company
announced that it had entered into exclusive discussions with Sistema on a
potential merger of the Indian telecom business of Sistema Shyam Teleservices
with itself through a share swap deal. Stocks of telecom firms may get some
boost from the government's Digital India initiative which will be launched
next week.
