Telecom Stocks Outlook
May track benchmark indices next wk; earnings eyed
This story was originally published at 21:45 IST on 10 January 2025
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MUMBAI – Shares of telecommunication companies may mirror the movement of the benchmark indices next week, analysts said. This week, all telecom stocks but Bharti Airtel ended the week lower, similar to the benchmark indices. Investor focus has largely shifted to December quarter earnings and reactions to earnings of major companies will lend cues to the market over the upcoming sessions, analysts said.
Telecommunication companies are expected to report positive earnings for the December quarter, with Bharti Airtel, Vodafone Idea, and Reliance Jio Infocomm expected to benefit from the tariff hikes undertaken in Jul-Sept, and data usage, analysts said. These companies are expected to announce more tariff hikes in the next six to nine months, a research analyst at a domestic brokerage said. Bharti Airtel is expected to report a better performance in the December quarter compared to Reliance Jio Infocomm, the analyst said.
Reliance Industries, the parent company of Reliance Jio, will announce its earnings for the December quarter on Thursday. Tariff hikes implemented by the company in the September quarter are expected to boost the earnings of the telecommunications arm of the company, the research analyst quoted above said. While Starlink's foray into the domestic telecom space is seen affecting the current market leaders in the long-term, there will be no impact in the short- to medium-term, the analyst said.
Commenting on the user base of the companies, the analyst said Bharti Airtel and Reliance Jio are expected to do well, while Vodafone Idea Ltd. is expected to "see a decline in user base at a slower pace", the analyst said. Meanwhile, the user base of Bharat Sanchar Nigam Ltd. is expected to remain "somewhere in the middle", the analyst said.
Shares of Bharti Airtel gained over 1% this week while those of Mahanagar Telephone Nigam Ltd., Tata Communications Ltd., Vodafone Idea, and Tata Teleservices Maharashtra Ltd. fell 1-13% in the same duration. In comparison, the benchmarks Nifty 50 and Sensex fell over 2% each.
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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 | 1,615.90 | 1.10 | 1,644.10 | 1,577.70 |
| Mahanagar Telephone Nigam | 45.13 | (-)12.60 | 48.80 | 43.10 |
| Reliance Industries | 1,241.90 | (-)0.70 | 1,265.60 | 1,224.10 |
| Tata Communications | 1,718.90 | (-)1.00 | 1,766.70 | 1,647.20 |
| Tata Teleservices Maharashtra | 69.46 | (-)12.50 | 75.00 | 66.50 |
| Vodafone Idea | 7.75 | (-)6.30 | 8.10 | 7.50 |
| Nifty 50 | 23431.50 | (-)2.40 | 23709.70 | 23205.20 |
| S&P BSE Sensex | 77378.91 | (-)2.30 | 78286.20 | 76645.90 |
End
Reported by Arya S. Biju
Edited by Deepshikha Bhardwaj
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