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Informist, Friday, Oct. 25, 2024

MUMBAI - Shares of telecommunication companies will take cues from the market next week, where overall sentiment is negative. The market has been correcting since the past four weeks after a sharp rally and analysts expect the headline indices to fall more. The telecom stocks fell this week amid a broad-based sell-off. All eyes will be on the earnings of Bharti Airtel for Jul-Sept, which is due on Monday.

"Vodafone Idea has its own set of problems," Ruchit Jain, lead research analyst at 5paisa, said. The stock will continue to underperform till we get more clarity on how it will go about its debt, Jain said. The stock has fallen over 26% this month and 15% this week alone. On Friday, the stock closed nearly 6% lower at INR 7.66 on the National Stock Exchange.

Power Finance Corp. and its subsidiary Rural Electrification Corp. rejected the company's request for a long-term loan, The Economic Times newspaper reported Friday. Power Finance Corp. and its subsidiary cited internal underwriting guidelines and concerns about the collateral offered as reasons for rejecting the long-term loan. "This is negative for the company," a research analyst covering the sector said, adding that it is "risk materialised."

Price-wise, the fall in Bharti Airtel shares is likely to be limited, Jain said. Bharti Airtel is expected to report robust earnings for the September quarter, boosted by tariff hikes and subscriber additions in the fourth-generation network. The company is also seen improving its industry-leading average revenue per user. The company's consolidated net profit is seen rising 12.6% on quarter to INR 46.8 billion for Jul-Sept. Bharti Airtel's net sales are seen 7% higher on quarter at INR 411.8 billion for the September quarter. Shares of Bharti Airtel closed 0.7% lower at INR 1,666 on the NSE.

Data released Friday showed that Indian telecom operators net lost 5.77 million subscribers in August. This is the second straight month that telecom operators have lost subscribers. Reliance Jio Infocomm, Bharti Airtel, and Vodafone Idea lost customers in August, while the government-owned Bharat Sanchar Nigam Ltd added users.

TOP HEADLINES
* PRESS: PFC, REC decline long-term loan to Vodafone Idea
* Earnings Outlook: Tariff hikes to support Bharti Airtel's growth in Jul-Sept
* Tata Teleservices Maharashtra net loss widens YoY to 3.3 bln in Jul-Sept
* Tata Comm to integrate NVIDIA's software solutions into AI cloud offerings
* Analyst Concall: Indus Towers says FY24 momentum may not be repeated
* Analysts Concall: Indus Towers says FY24 momentum may not be repeated
* CCI gives nod to Bharti Airtel to raise stake in Indus Towers
* Earnings Review: Indus Towers Jul-Sept consol PAT up 15% on qtr at INR 22 bln
* RailTel Corp bags order worth INR 367.8 mln from South Eastern Railway
* Route Mobile Jul-Sept consol net profit rises 29% on quarter to INR 1.01 bln
* Earnings Outlook: Telco capex to up Indus Towers Jul-Sept sales but not PAT
* HFCL Jul-Sept consol net profit falls 33.6% QoQ, sales fall 5.6%
* Tejas Networks posts INR 2.75 billion consol PAT in Jul-Sept vs loss yr ago

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 Saji George Titus

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