Telecom Stocks Outlook for the week – 27 to 31.07.2015
(Expected
to remain range bound)
In
the absence of any sector-specific triggers, shares of major telecom companies
are expected to
remain
range-bound to negative next week with the exception of sector leader Bharti
Airtel, which can see some positive momentum. Shares of telecom companies are
expected to track the broader market that may remain subdued due to lack of
progress in the ongoing monsoon session of Parliament.
Many
important economic bills are stuck in Parliament that has hardly seen any work
in the current session amid din by the Opposition over several issues. The
sector is seen negative in the short term with the exception of market leader
Bharti Airtel which is seen positive as long as it stays above its support
level of 420 rupees.
Idea
Cellular that posted a better-than-expected Apr-Jun result this week is
expected to trade within a narrow range. Idea Cellular Ltd had reported a
consolidated net profit of 9.31 bln rupees for Apr- Jun quarter. Recently, Idea
Cellular said it would launch 4G services in select locations in 2016. Its rivals
Vodafone India on Friday said it has started trials of 4G services across
selected areas, while Bharti Airtel has already launched 4G services in certain
circles.
The
competition is going to intensify further with the launch of data-centric
services by Mukesh
Ambani-owned
Reliance Jio Infocomm, which is expected to launch its 4G services by the end
of this year. Some anticipatory trading is expected in shares of Tata
Communications and Tata Teleservices Maharashtra, which are expected to
announce their quarterly numbers on Jul 28 and Jul 30, respectively.