GOLDEN RULES FOR TRADING

Telecom Stocks Outlook for the week – 08 to 12.08.2016 Range bound next week; Idea Apr-Jun results eyed

Telecom Stocks Outlook for the week – 08 to 12.08.2016
Range bound next week; Idea Apr-Jun results eyed

Stocks of telecommunication companies are seen moving in a range next week. Focus will be on Idea
Cellular Ltd, which will announce its Apr-Jun earnings on Monday. The country's third largest operator by customer base is expected to report a consolidated net profit of 4.49 bln rupees, down 22% on quarter. Consolidated net sales are seen rising 2.8% on quarter to 97.33 bln rupees. Idea Cellular's quarterly number are seen under pressure due to a slowdown in volume growth, fall in margins, and huge investment incurred in rolling out 4G services across the country.

The stock is seen weak on charts. Movement will be guided by its Apr-Jun numbers. Bharti Airtel Ltd, which corrected over the past week after delivering handsome June quarter numbers, is expected to move in a narrow range. Earlier yesterday, the Sunil Mittal-promoted company launched two new
post-paid plans that have data bundled with unlimited calling. This comes in the wake of a pricing
war over data and voice as existing telecom players gear up for the entry of Reliance Jio Infocomm,
the telecom arm of Reliance Industries Ltd. Telecom majors including Idea Cellular and Vodafone
India Pvt Ltd have announced price cuts, or have launched creatively bundled packs with higher data
and voice quantum.