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Informist, Friday, Dec. 13, 2024

MUMBAI – Shares of Bharti Airtel are expected to extend gains next week on the back of improved growth prospects and a competitive edge in the telecom industry. On other hand, shares of Vodafone Idea and Reliance Industries could fall some more next week owing to concern over loss of subscribers or likely competition from the US-based Starlink.

"Bharti Airtel will perform relatively better (than sectoral peers)," said Vinit Bolinjkar, head of research at Ventura Securities. The company is not facing pressures, such as subscriber loss, which others in the telecom industry are facing, he said. Also, the company's data centre business is expected to gain traction, and is seen as a major positive, he said.

Buying interest towards shares of Bharti Airtel spiked Friday after the stock was reportedly chosen by brokerage Jefferies India as one of its top picks for 2025. Analysts are bullish on the company on expectation of growth in the rural market, which is still quite under-penetrated, and the growth potential of the urban market. The rise in the company's average revenue per user is also seen as a positive by analysts.

Meanwhile, the overhang of Starlink's entry into the industry is still there, Bolinjkar said. Elon Musk's satellite-based Starlink internet service, which is expected to be launched in India early next year, may challenge major internet providers in the country, particularly market leader Reliance Jio. Reliance may require some new initiatives to reverse the ongoing downtrend. The stock has ended lower in six out of the past eight sessions. It has fallen 3% this week and nearly 14% in 90 days.

Vodafone Idea is "not a stock to invest in", as it has far too much debt, which has made it unsustainable, Bolinjkar said. Last month, Vodafone Idea had said it hopes to stage a smart turnaround in the current financial year, calling it a "critical" year. While shares of Bharti Airtel rose over 5% this week, shares of Reliance and Vodafone Idea fell 3% and nearly 2%, respectively.

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* Vodafone Idea launches Super Hero plan to provide unlimited data
 

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 Akul Nishant Akhoury

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