Telecom Stocks Outlook
Likely to gain next week; Vodafone Idea meeting eyed
This story was originally published at 21:39 IST on 6 December 2024
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MUMBAI – Shares of most telecommunication companies are expected to gain next week, in tandem with the headline indices. Market participants will eye the outcome of Vodafone Idea's board meeting Monday. The board is slated to consider raising up to INR 20 billion through the issuance of equity shares and/or convertible securities on a preferential basis to promoter entities of the Vodafone Group.
However, analysts said the Vodafone Idea stock could see some more correction. The stock was down nearly 3% this week. Considering the company's large capital expenditure plans, broking firm Motilal Oswal Financial Services believes the pace of its gain in market share may slow down. The other two major telecom players, Reliance Jio and Bharti Airtel, are likely to continue gaining Vodafone Idea's market, the brokerage said.
Given the consolidated market structure in the Indian telecom industry, higher data consumption, lower average revenue per unit, and inadequate returns generated by these companies, tariff hikes are expected to be more frequent, Motilal Oswal Financial Services said in a report. The brokerage expects a tariff hike of around 15% in December 2025. The brokerage found the pass-through of tariff hikes in July encouraging, and believes the full benefits will be reflected by March as subscriber churn subsides.
Shares of Indus Towers rose this week after Vodafone Plc sold off its 3.003% stake in the company. Vodafone Plc sold over 79.2 million shares to repay outstanding borrowings of $101 million. This is expected to be a positive for Indus Towers as a portion of the funds will be used by Vodafone Idea to clear its outstanding dues to the company.
TOP HEADLINES
* Vodafone Idea launches Super Hero plan to provide unlimited data
* PRESS: India plans to relax security requirements for satcom licence
* Tejas Networks to supply equipment for BharatNet project in Tamil Nadu
* Vodafone Idea board to Mon mull raising INR 20 bln from promoter entities
* RailTel Corp gets INR 106.47-mln order from Gail India
* Vodafone Plc to sell 3% stake in Indus Towers, use funds to pare dues
* Bharti Airtel awards Ericsson multi-billion extension deal for 4G, 5G pdts
* Arbitral tribunal rejects MTNL's INR 1.5 bln claim against Sterlite Tech
* HC restores Samsung India's plea in appellate tribunal against tax demand
* RailTel Corp gets INR 100-mln order from Northern Railway
* SC asks broadcasters to challenge tariff order on channels in TDSAT
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:
| Company | Price | Week-on-week change in % | Resistance | Support |
| Bharti Airtel | 1,597.85 | (-)1.80 | 1,635.60 | 1,575.90 |
| Mahanagar Telephone Nigam | 51.88 | 6.88 | 56.00 | 47.80 |
| Reliance Industries | 1,311.55 | 1.50 | 1,329.10 | 1,301.30 |
| Tata Communications | 1,788.10 | 1.90 | 1,822.00 | 1,766.80 |
| Tata Teleservices Maharashtra | 80.31 | 2.00 | 82.20 | 78.50 |
| Vodafone Idea | 8.12 | (-)2.90 | 8.40 | 7.90 |
| Nifty 50 | 24677.80 | 2.30 | 24813.70 | 24552.60 |
| S&P BSE Sensex | 81709.12 | 2.40 | 82133.50 | 81294.00 |
End
Reported by Anjali SIngh
Edited by Rajeev Pai
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