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Informist, Friday, Aug 2, 2024

MUMBAI – Shares of telecommunication companies are expected to mirror the headline equity indices and may fall if the market corrects, analysts said. Further, the June quarter earnings of telecom major Bharti Airtel, scheduled for release Monday, are likely to lend major cues to investors and help gauge the performance of the sector, they said.

With its Apr-Jun earnings due next week, shares of Bharti Airtel are expected to be volatile, Arpan Shah, a senior research analyst at Monarch Networth Capital, said. It is difficult to comment on the stock as it acts like a defensive stock sometimes, while it moves in tandem with the market at other times. Further, "if you want to go short, then Indus Towers is the stock to watch out for", Shah said. Telecommunications infrastructure firm Indus Towers had, on Tuesday, reported a 4% sequential growth in its consolidated net profit for Apr-Jun.

Meanwhile, for Bharti Airtel, factors such as subscriber additions, growth in its domestic business, and a recovery in its Africa business will aid earnings growth in Apr-Jun, according to various brokerage firms. The company's net profit is expected to have grown 68% sequentially and nearly 116% on year to 34.79 bln rupees for the quarter, according to an average of estimates by brokerage firms.

The company's operating profit for the June quarter is also expected to grow sequentially, aided by a healthy performance in its India business and ease of pressure from currency devaluation in Africa. Consolidated revenue for the quarter is seen rising nearly 3% on quarter to 385.76 bln rupees, as per estimates.

TOP HEADLINES

* Earnings Outlook: Vodafone Idea's net loss to deepen in Apr-Jun
* RailTel Corp Apr-Jun PAT falls 37.2% on quarter, sales fall 33%
* MTNL seeks 11.52 bln rupees from govt to pay interest dues
* Earnings Review: Indus Towers consol PAT, revenue subdued in Apr-Jun
* Indus Towers Apr-Jun consol PAT up nearly 4% QoQ at 19.26 bln rupees
* Bharti Airtel expands Wi-Fi service to 2.6 mln more households
* Bharti Airtel expands Wi-Fi service to 6.5 mln more households

Following are the resistance and support levels for the stocks for next week as per calculations by Informist based on their prices on the National Stock Exchange:

End

Reported by Alina Geogy

Edited by Tanima Banerjee

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