More Stories

Informist, Friday, Sep 27, 2024

MUMBAI - Shares of Bharti Airtel and Tata Communications are expected to extend their gains next week, while those of Vodafone Idea will remain under pressure, analysts said. In the near-term, telecommunications stocks are expected to correct 3-5%, a research analyst covering the sector said.

Vodafone Idea ended nearly 3% higher today after media reports said the company may be exempted from furnishing a financial bank guarantee of 250 bln rupees for spectrum purchased before 2022. Vodafone Idea was required to submit the bank guarantee in lieu of the spectrum payment a year before the moratorium on the payment of adjusted gross revenue and spectrum dues to the government expires in September 2025, as per the report. Earlier this week, it also said it signed a long-term $3.6-bln deal with Nokia, Ericsson, and Samsung for the supply of network equipment for the expansion of its fourth-generation network.

Despite this, the outlook for the stock is weak, and it will likely fall more, a technical analyst at a domestic brokerage said. Heavyweight Bharti Airtel is seen extending gains in the upcoming sessions, analysts said. Similarly, the outlook for infrastructure providers for telecommunication companies is positive, as government-owned Bharat Sanchar Nigam and Vodafone Idea are still expanding their network. Indus Towers gained over 1% this week. 

The research analyst expects these stocks to remain rangebound before a tariff hike comes into the picture. With the not-so-good average revenue per user in the country, another hike cannot be expected in the next 12–18 months, the analyst said. Telecommunication companies hiked their tariffs in June, with Reliance Jio Infocomm increasing the tariff in the range of 12-27% across plans. 

TOP HEADLINES
* Minister Scindia inaugurates Tejas Network's communication centre
* RailTel Corp gets 1.56-bln-rupee order from Maharashtra govt
* Bharti Airtel launches AI-powered network solution to detect spam
* PRESS: Vodafone Idea may get guarantee waiver, resumes talks on dues
* Bharti Airtel expands network in Gujarat, installs 1,700 new towers
* HFCL to develop critical sub-systems for General Atomics' aircraft
* Vodafone inks $3.6 bln deal with Nokia, Ericsson, Samsung
* Data Alert: India net lost 922,375 mobile subscribers in July

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:

End

Reported by Anjali Singh
Edited by Tanima Banerjee

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved