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Informist, Friday, Aug 30, 2024

MUMBAI – Shares of telecommunication companies will be mixed next week owing to stock-specific action. Several stocks are likely to benefit from the ongoing upward rally in the domestic market supported by strong domestic inflows. However, some stocks will trade in a range-bound manner owing to lack of major triggers for the sector.

The outlook for Bharti Airtel remains positive following its recent tariff hike. The stock is expected to rise more next week and aid gains in the benchmark indices, followed by some amount of profit-booking at higher levels. The increased tariffs are driving Bharti Airtel's average revenue per user, improving its return ratios, and reinforcing the industry repair thesis, brokerage firm Bernstein said, as reported by ET Now. Bernstein also raised the stock's target price while maintaining its "outperform" rating. Shares of Bharti Airtel hit a lifetime high today, extending gains for the eighth straight session. On the other hand, shares of Vodafone Idea are expected to consolidate after having fallen for four straight weeks.

Investors will also digest the developments related to a case heard by the Supreme Court today, related to a batch of curative petitions filed by telecom companies including Bharti Airtel and Vodafone Idea against the court's previous order on adjusted gross revenue calculations. The apex court had earlier rejected their petition for rectification of alleged errors in the calculation of adjusted gross revenue dues payable by the companies.

Meanwhile, shares of oil-to-telecom conglomerate Reliance Industries are expected to remain range-bound for the near-term, analysts said. Market participants were disappointed as the eagerly-anticipated announcement related to the initial public offering of Reliance Jio was not made.

Updates regarding Reliance Jio and the expected timeline for the IPO got sidelined because of other announcements by the company, such as the surprise bonus issue of shares, a research analyst at a domestic brokerage firm said. At its annual general meeting, Reliance Industries also spoke of its plans, particularly related to the company's expenditure on research and development that they are doing across Jio, the analyst said. Thus, it seems the company is having some big plans internally, so we need to see how these roll out, the analyst said.

At its annual general meeting held Thursday, the company said it plans to double Jio's revenue and earnings before interest, taxes, depreciation, and amortisation in the next 3-4 years. It said it is catering to 30 mln customers across home broadband and digital television services, and targets connecting 100 mln homes and 20 mln small and medium businesses. It also introduced 'JioAI Cloud - Welcome Offer' entailing 100 GB free cloud storage and incremental storage at an affordable pricing, to be launched later this year.

TOP HEADLINES

* NCLT approves merger of 3M Electro & Comm with 3M India
* ITI to supply 500 e-voting machines to West Bengal election commision
* HFCL commissions BSNL's network infrastructure enhancement project
* SC to hear Fri Bharti Airtel, Vodafone Idea curative plea on AGR dues
* Bharti Airtel says Indus Tower to become subsidiary after buyback
* PRESS: Bharti Airtel to shut Wynk Music app, absorb its employees
* RailTel gets 709-mln-rupee work order from Eastern Railway
* Airtel in pact with Apple to bring offers to Indian customers

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 Ashish Shirke

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