Telecom Stocks Outlook for the week – 20 to 24.02.2017

Telecom Stocks Outlook for the week – 20 to 24.02.2017


Free Intraday Tips : Join Our Whatsapp No : 9841986753
Free Commodity Tips : Join our Whatsapp No : 9094047040

Telecom Stocks Outlook for the week – 20 to 24.02.2017
  www.rupeedesk.in )

Stocks of telecommunication companies are seen trading in a narrow range next week, with movement likely to be stock specific. Analysts expect stocks of Bharti Airtel to see an uptick, while those of Idea Cellular to trade sideways. Tata Communications is likely to witness consolidation following its rise so far. Stocks of Reliance Communications will remain weak. The long-term outlook for the sector is better than expected, and there is value in the stocks at current levels. Analysts expect a better industry structure to emerge in the sector post the entry of and disruption caused by Reliance Jio Infocomm. In the shortterm, however, telecom companies may continue to witness pressure on tariff. Telecom operators have been facing pressure to slash tariff after the entry of Reliance Jio. The subsidiary of Reliance Industries shook the industry by offering free data and voice services, leading to concerns over erosion in market share of incumbent operators and fall in average revenue. The sector is also awaiting details on the proposed merger between Vodafone India and Idea Cellular announced last month. Stocks of Idea Cellular are expected to trade sideways. Analysts continue to remain positive on Bharti Airtel. Despite the uptrend in shares of Tata Communications, the weekly formation is not convincing. This rally may not continue. We wouldn't be surprised if there is a time and price correction in the stock now. Reliance Communications remains the weakest of the lot.