Telecom Stocks Outlook for the week – 15 to 19.05.2017
Telecom Stocks Outlook for the week – 15 to 19.05.2017
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Telecom Stocks Outlook for the week – 15 to 19.05.2017
( www.rupeedesk.in )
Stocks of telecom companies are seen trading largely with a positive bias in the upcoming week. However, large gains are not expected as broader market is seen in a narrow band next week. During the week, Bharti Airtel posted a fall of 25.9% on quarter in consolidated net profit, on competition from Reliance Jio Infocomm Ltd's free data and voice services. Despite RJio concerns, the New Delhi-based company's total customer base in India as of Mar 31 grew nearly 3% on quarter to 273.6 mln, while data customer base in India rose 4.5% to 57.3 mln users in Jan-Mar. This had improved the sentiment of investors on the stock, which rose nearly 6% in the week, leading to optimism in the sector. Optimism in the stock is seen continuing and the stock may rise 3% over the upcoming sessions. Idea Cellular is set to detail the earnings for the Jan-Mar quarter on Saturday and is expected to post consolidated net loss at 7.7 bln rupees, as against a loss of 3.84 bln rupees in the previous quarter. The company's top line in Jan-Mar is likely to decline 5.7% on quarter to 81.7 bln rupees. A poor performance by company may see the stock to fall in the week while a robust performance sees the stock gaining 2-3%. Further details on the merger plans of Idea Cellular and Vodafone India might also lead to positive momentum in the stock next week. Yesterday, Tata Teleservices Maharashtra reported a loss of 13.6 bln rupees as compared to a loss of 4.1 bln rupees a quarter ago owing to a one-time loss of 9.6 bln rupees arising out of impairment linked to spectrum investments. An analyst expects the stock to open down on Monday and is likely to hit a new low in the upcoming week
Source : Cogencis Information Services Ltd.
