Telecom Stocks Outlook
Seen in range; Bharti Airtel earnings Thu eyed
This story was originally published at 19:31 IST on 1 February 2025
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NEW DELHI – Stocks of telecommunication companies are expected to be in range next week, with no major triggers until Bharti Airtel reports its December quarter earnings Thursday, analysts said. Saturday's Union Budget did not have any major announcements for the telecom sector, and telecom stocks will be unaffected by it, analysts said.
Nifty 50 heavyweight Bharti Airtel ended the week in the red, after gaining for three consecutive weeks. The stock declined 1.3% this week, despite an overall uptrend in the market. Meanwhile, Reliance Industries, parent of telecom behemoth Reliance Jio Infocomm, gained 1.5% this week. Vodafone Idea also extended its gains for the third consecutive week. Meanwhile, Tata Communications extended its losing streak for the fourth consecutive week and has lost over 6% in that period.
On the earnings front, Bharti Airtel's consolidated net profit is seen more than doubling on year for the December quarter to INR 50.32 billion, according to an average of estimates from seven brokerages. However, its sales are seen growing just 16% on year to INR 438.77 billion. While the impact of the tariff hikes undertaken in June is slowly moderating, Bharti Airtel will still reap the benefits from it, Himanshu Shah, research analyst at Dolat Capital, said. The company's average revenue per user is expected to grow 4-5% sequentially, the analyst said. Its subscriber base, which had fallen in the previous quarter, is expected to perform better.
With Bharti Airtel's earnings scheduled this week, Vodafone Idea will be the only telecom major yet to announce its quarterly earnings for the quarter. The company is yet to announce the date when it will report its earnings.
TOP HEADLINES
* BUDGET: FY26 telecom receipts seen INR 824.43 bln, down 33% from FY25
* Vodafone Idea gets tax order for INR 1.3-bln penalty, demand, interest
* RailTel Corp receives three orders totalling INR 2.21 billion
* Vodafone Idea gets INR 3.63-bln tax demand from Pune's central tax authority
* PRESS: Public sector banks mull 20% haircut on MTNL loans amid default
* 3M India appoints Prasad Balakrishnan as interim CFO effective Thursday
* RailTel Corp gets order worth INR 171.28 mln from Navodaya Vidyalaya
* Route Mobile Oct-Dec consol PAT falls 18.6% on qtr to INR 824.8 million
* Railtel Corp Oct-Dec net profit falls 10.4% QoQ, sales down 9%
* Analyst Concall:Indus Towers sees sustained demand for passive telecom infra
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 | 1,623.25 | (-)1.30 | 1660.30 | 1590.70 |
| Mahanagar Telephone Nigam | 46.08 | 0.50 | 50.70 | 42.70 |
| Reliance Industries | 1264.60 | 1.50 | 1288.30 | 1229.20 |
| Tata Communications | 1616.70 | (-)0.80 | 1667.40 | 1567.20 |
| Tata Teleservices Maharashtra | 73.43 | (-)1.20 | 80.10 | 67.00 |
| Vodafone Idea | 9.60 | 1.50 | 10.70 | 8.10 |
| Nifty 50 | 23482.15 | 1.70 | 23791.80 | 23163.50 |
| S&P BSE Sensex | 77505.96 | 1.70 | 78363.10 | 76577.90 |
End
US$1 = INR 86.60
Reported by Akash Mandal
Edited by Tanima Banerjee
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