Telecom Stocks Outlook for the week – 03 to 07.08.2015

Telecom Stocks Outlook for the week – 03 to 07.08.2015

Seen up on positive sentiment for sector

( www.rupeedesk.in )

Stocks of telecom companies, most of which shed 3-6% in the week that concluded yesterday, are likely to be in the green next week. Expectations of good Apr-Jun earnings, broad regulatory

certainty and galloping data consumption growth are likely to keep the sentiment for telecom stocks upbeat.

Bharti Airtel Ltd, reporting its June quarter earnings Tuesday, is seen clocking a 14% rise in its net profit to 14.35 bln rupees. Idea Cellular Ltd had on Jul 21 reported better-than-expected consolidated net profit of 9.31 bln rupees, although it was up only 1.2% sequentially. The company's Apr-Jun consolidated operating margin raised 31 basis points sequentially to 36.69%. The sector stocks for the week are seen positive.

Reliance Communications was the sole gainer in the week, rising by 3.7% over the week. Continued speculation over the company selling stake in its tower arm is likely to have kept the counter buzzing. According to media reports, private equity firms such as Blackstone, Providence Equity Partners and The Carlyle Group, Bharti Infratel Ltd and American Tower Corp is among the contenders for buying the stake.