GOLDEN RULES FOR TRADING

Telecom Stock Outlook for the week – 26 to 30.10.2015 Bharti, Idea likely to trade in negative zone

Telecom Stock Outlook for the week – 26 to 30.10.2015
Bharti, Idea likely to trade in negative zone

Stocks of major telecom companies are expected to trade in the negative territory next
week after analysts predicted a 28% decline in Bharti Airtel Ltd's Jul-Sep consolidated
net profit at 11.16 bln rupees. The overall outlook for the sector is seen negative with the
exception of Reliance Communications Ltd which is expected to move from sideways to
negative but decline is likely to be insignificant. During the week, the stock ended down
7.5% on fear that the company's performance would continue to be weak, especially due
to greater competition post Reliance Jio Infocomm's launch. On Wednesday, Idea
Cellular posted a 7.1% on-year growth in its consolidated net profit for the quarter ended
September to 8.1 bln rupees following an in increase in volume of both data and voice
services.