Telecom Stocks Outlook for the week – 02.12.2013 - 06.12. 2013 www.rupeedesk.in
Telecom stocks next week will eye the meeting of the Empowered Group of Ministers on spectrum, which is scheduled to meet Tuesday to discuss the proposed merger and acquisition norms and the sector regulator's proposal on spectrum usage charges. The ministerial panel, which met last Friday, had decided it would meet again to mull the Telecom Commission's proposal, which had recommended that merged entities be allowed to have up to 50% market share in a circle, after having paid the market-determined price for the acquired spectrum as a result of the merger. The panel will also have to take a call on whether spectrum usage charges paid by the telecom service providers to the government should be kept at a uniform 3% of their annual adjusted gross revenue as per the recommendations of the Telecom Regulatory Authority of India. Currently, telecom service providers pay spectrum usage charges in the range of 2-8% depending on the amount of spectrum held by them. We believe the regulatory environment continues to improve and so we have retained our positive stance on Bharti Airtel and Idea Cellular. In terms of the performance of telecom stocks next week on the indices, the trend is seen mixed. Bharti Airtel is expected to trade negatively next week with the stock expected to decline to 318 rupees. Persistent selling pressure on the stock may lead to the stock to decline to as low as 309 rupees, adding that the upside for the stock is seen limited to 335 rupees. We recommended that investors should adopt a 'sell on rise' strategy for Idea Cellular as reversal in the stock's recent uptrend is seen in the coming sessions. -- You received this message because you are subscribed to the Google Groups "Rupeedesk Profits" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. To post to this group, send email to [email protected]. Visit this group at http://groups.google.com/group/kences1. For more options, visit https://groups.google.com/groups/opt_out.
