GOLDEN RULES FOR TRADING

Telecom Stocks Outlook for the week – 20 to 24.07.2015

Telecom Stocks Outlook for the week – 20 to 24.07.2015
(Expected to trade bullish; Idea, RComm seen positive)

Stocks of major telecom companies such as Bharti Airtel, Idea Cellullar and Reliance
Communications are expected to partially recover and trade with a positive bias next week, after a
subdued performance for the past one month.

The outlook for the telecom sector is positive. The stocks were going through a corrective phase. But
the stocks are now showing some positive momentum. Even sector laggard like Reliance
Communications is expected to remain positive next week.

Trading in Idea Cellular stocks could rise in anticipation of the company's Apr-Jun earnings on
Tuesday. Idea Cellular Ltd's consolidated net profit for Apr-Jun is seen falling on quarter by 5% to
8.9 bln rupees. Net profit will also be impacted as the quarter will see the full impact of the rise in
service taxes. The government has hiked service tax rates to 14% from 12.36%%.

The recent report on net neutrality submitted by a government appointed committee also helped the
stocks of major telecom companies to recover. On Thursday, a government panel on net neutrality
had proposed regulating domestic calls made through Internet-based calling applications such as
Skype, Whatsapp and Viber.