More Stories

Informist, Friday, Nov. 22, 2024

MUMBAI - Shares of Indian telecom companies are likely to see muted movements in the near term, analysts said. The continuous fall in the customer base of listed players in India may weigh on the sentiment of investors, they added. The listed players net lost customers due to the tariff hikes they had adopted. On the other hand, their unlisted rival, Bharat Sanchar Nigam Ltd, saw net addition of subscribers as the company did not adopt any increase in tariffs, according to data from the Telecom Regulatory Authority of India Thursday.

However, the medium- to long-term bias towards the sector remains positive, analysts said. Goldman Sachs has an 'overweight' view on the Indian telecom sector as it expects consolidation in favour of top players, 4G or 5G capital expenditure spending to taper off and further tariff hikes, it said in its strategy report. "We expect the start of a multi-year 20%+ EBITDA growth trajectory for Indian telcos, driven by mix shift and future tariff hikes. We expect market share consolidation in the favour of Bharti Airtel and Jio to continue," the broking firm said in its report dated Tuesday.

Wednesday, the Supreme Court held that telecom companies are entitled to central value-added tax credit of central excise duty paid on towers, their parts, green shelter, printers and office chairs. "We expect positive for telecom companies as the Supreme Court ruled in their favour, granting them the right to claim tax credits on duties paid for infrastructure components like tower parts and green shelters," Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services, said in a post-market note Thursday.

Investors will also look for updates about approval for Elon Musk's Starlink in India. The government may ease some conditions for issuing a licence to Starlink, which seeks to launch satellite broadband services in India, The New Indian Express reported Wednesday. The analyst tracking the sector had said that the entry of Musk's company could challenge domestic players, including listed companies such as Bharti Airtel, Vodafone Idea, and Reliance Industries' Jio. 

TOP HEADLINES
* Indus Towers says SC verdict will cut contingent liability by INR 37 bln
* Bharti Airtel awards Nokia multi-billion extension deal for 4G, 5G equipment
* SC allows telecom cos CENVAT credit of duty on towers, other accessories
* PRESS: Singtel, Mittal family plan to equalise direct stakes in Airtel
* PRESS: India's smartphone exports hit $2 bln in October, up 70% on year
* Analyst Concall : Vodafone Idea hopes to stage smart turnaround in FY25

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 Anjana Therese Antony
Edited by Deepshikha Bhardwaj

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.