GOLDEN RULES FOR TRADING

Telecom Stocks Outlook for the week – 09 to 13.05.2016 Bharti Airtel, RComm seen up next week

Telecom Stocks Outlook for the week – 09 to 13.05.2016
Bharti Airtel, RComm seen up next week

Stocks of telecom service providers are seen trading higher next week as investors may react positively to their recent announcements. Bharti Airtel's arm Bharti Airtel International (Netherlands) BV signed an agreement with Helios Towers Africa to sell its 950 towers in the Democratic Republic of Congo. The deal will help the company cut debt and capital expenditure. Reliance communications Ltd kick-started a price war by offering 10 GB of 4G data bundled with 150 voice minutes for 93 rupees per month.

The move is likely to free the spectrum for Reliance Jio Infocomm Ltd, as Reliance Communications is not offering any handset subsidy for the upgrades so far; thus, its code divisional multiple access users would need to invest in new 4G global systems, which could limit immediate 4G adoption.

Aditya Birla Group company Idea Cellular Ltd may spend $1.3 trln in adding data spectrum at the
upcoming auctions, expected around July. As per media reports, analysts expects Idea to cherry-pick data spectrum in Maharashtra, Kerala, Madhya Pradesh, UP-West circles, where the company has seen a sharp surge in incremental revenue market share over the past one year.