GOLDEN RULES FOR TRADING

Telecom Stocks Outlook for the week – 11 to 15.04.2016 (Bharti Airtel, Idea, RComm seen up next week)

Telecom Stocks Outlook for the week – 11 to 15.04.2016
(Bharti Airtel, Idea, RComm seen up next week)



Shares of Bharti Airtel Ltd and Idea Cellular Ltd are seen trading higher next week as
analysts expect these companies to generate higher data revenues in Jan-Mar. Shares of
Reliance Communications Ltd are likely to gain due to Cabinet decision, earlier this week, to liberalise telecom spectrum.

Bharti Airtel signed a deal with Aircel Ltd to buy the latter's high-speed data services
spectrum for eight circles for 35 bln rupees. Reliance Communications that hit a one month low of 48.65 rupees on Thursday after Moody's Investors Service cut its outlook
on the company to 'negative' from stable.

Delays in the sale of the company's non-core assets underpin its deleveraging strategy
and have strained the company's financial and credit profile in the near term. However,
the recent decision of the Union Cabinet to liberalise telecom spectrum, which was allotted to the companies outside the auction process, is seen benefiting Reliance
Communications.

The companies can share, trade or use such spectrum to deliver different services at a
base price recommended by the telecom sector regulator and when an auction in same
bandwidth happens the provisional rate will be adjusted with the market-determined
price on a pro-rata basis.