Telecom Stocks Outlook
Bharti Airtel seen up; eyes on RIL AGM
This story was originally published at 21:47 IST on 16 August 2024
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MUMBAI - Shares of Bharti Airtel are expected to rise further next week, but those of Vodafone Idea may extend losses, analysts said. A major trigger for these companies will be the annual general meeting of Reliance Industries, scheduled for Tuesday. The market expects announcements related to the initial public offering of Reliance Jio, a research analyst covering the sector said.
Reliance Jio's market capitalisation is expected to be close to or higher than that of Bharti Airtel, the analyst said. Bharti Airtel ended today's session with a market capitalisation of 9.026 trln rupees. Shares of Bharti Airtel closed 0.8% higher on the National Stock Exchange, while those of Reliance Industries closed 1.1% higher.
Earlier this week, Vodafone Idea released its earnings for Apr-Jun, with its net loss shrinking both on year and quarter, following a reduction in finance costs and higher other income. "The significant amount of cash required to service debt leaves limited upside opportunities for equity holders despite the high operating leverage opportunity from any source of (average revenue per user) improvement," Motilal Oswal Financial Services said in its report.
For the sector as a whole, the brokerage said in a separate report that the fifth generation network ramp-up had not contributed meaningfully to revenue growth in the June quarter. There are expectations that the average revenue per user will rise in the September quarter after the recent price hikes. Market participants do not see another price hike for six months at least. Some see a hike only after 12 months.
TOP HEADLINES
* Earnings Review: Vodafone Idea remains loss-making on subscriber fall
* Indus Towers' share buyback offer to open Wed, close on Aug 21
* Vodafone Idea consol net loss Apr-Jun narrows QoQ to 64.32 bln rupees
* ITI net loss narrows QoQ to 911 mln rupees in Apr-Jun
* Bharti Global to acquire 24.5% stake in BT Group from Altice UK
Following are the resistance and support levels for the sector's key stocks for next week, as per calculations based on their prices on the National Stock Exchange:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharti Airtel | 1,483.55 | 1.30 | 1503.80 | 1458.00 |
| Mahanagar Telephone Nigam | 59.50 | (-)5.90 | 66.40 | 55.50 |
| Reliance Industries | 2956.40 | 0.30 | 2989.10 | 2899.70 |
| Tata Communications | 1864.60 | (-)1.20 | 1888.10 | 1828.40 |
| Tata Teleservices Maharashtra | 89.26 | (-)3.90 | 91.80 | 86.60 |
| Vodafone Idea | 15.88 | (-)1.40 | 16.20 | 15.50 |
| Nifty 50 | 24541.15 | 0.70 | 24795.90 | 24077.10 |
| S&P BSE Sensex | 80436.84 | 0.90 | 81298.80 | 78875.70 |
End
Reported by Anjali Singh
Edited by Rajeev Pai
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