Telecom Stocks Outlook
Up more on recent corporate deals, govt funding
This story was originally published at 20:48 IST on 13 March 2025
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MUMBAI – Most telecommunications stocks are seen rising next week, extending their gains to one more week. Analysts have shared positive views about major industry players Bharti Airtel and Jio Platforms after both signed pacts with US-based SpaceX to bring Starlink's high-speed internet services to India. Shares of state-owned telecom company Mahanagar Telephone Nigam may see some more buying momentum next week after the government said the company had earned almost INR 24 billion by monetising assets since 2019 to January this year, and highlighted financial packages for its network expansion.
Earlier this week, both Reliance Industries' Jio Platforms and Bharti Airtel signed separate agreements with Elon Musk-led SpaceX to offer the latter's services in India, subject to regulatory approvals. While the pact will allow the two Indian players to access Starlink's advanced satellite technology, SpaceX is also set to benefit from their extensive ground infrastructure, retail network, and market expertise in India, according to analysts. Shares of Vodafone Idea could fall some more over the coming days, as buying interest is seen improving for shares of rivals Bharti Airtel and Reliance Industries.
"The partnership with SpaceX to offer Starlink services in India augurs well for Bharti Airtel and Reliance Industries by maintaining a competitive balance and mitigates the risk of SpaceX disrupting the Indian telecom landscape independently," Mirae Asset Sharekhan said in a report. The pact with SpaceX is in the right direction although pricing and regulatory challenges would render it neutral in the near-term but allay disruption concerns, the brokerage said. While Starlink's entry was seen as a major competitive threat, the company was expected to face several hurdles, such as its premium pricing, regulatory challenges, and security clearances, before it could achieve widespread adoption in India.
State-owned telecom firms Bharat Sanchar Nigam and MTNL have earned a total of INR 129.85 billion from the monetisation of assets since 2019, Minister of State for Communications Pemmasani Chandra Sekhar had informed Lok Sabha on Wednesday. Shares of MTNL closed with 13% gains on Thursday after the minister said the company earned the amount from monetisation of land and building assets up to January. The prospects of these state-owned companies are also bright after the government announced several financial packages to strengthen their network infrastructure. This includes the government's approving an additional capital expenditure plan of nearly INR 70 billion for BSNL in February.
TOP HEADLINES
* Govt says BSNL, MTNL to continue monetising assets, no plan to privatise them
* RailTel Corp to pay INR 1 per share interim dividend, record date Apr 2
* Bharti Airtel transfers 70% stake in Airtel Payments Bank to its arm Airtel
* Data alert: Indian telecom operators add subscribers in Dec after 5-month gap
* Bharti Airtel, SpaceX in pact to offer Starlink's internet services in India
* ANALYSIS: Indus write-back helps Nifty 200 telecom cos beat Q3 PAT estimate
* PRESS: Vodafone Idea misses INR 60.91-bln-bank guarantee submission deadline
* SEI Trust Co buys 0.02% stake in Bharti Airtel via INR 1.53-bln block deal
* HFCL arm wins INR 443.6-mln order to supply optical fibre cable assemblies
* RailTel Corp gets work order of INR 282.91 mln from Northern Railway
* RailTel Corp board to meet Wed to mull interim dividend for FY25
* RailTel Corp bags work order of INR 475.01 mln from East Central Railway
* PRESS: Govt may waive outstanding spectrum usage charges for telecom cos
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 | 1,632.50 | 0.10 | 1,667.00 | 1,612.40 |
| Mahanagar Telephone Nigam | 48.88 | 14.90 | 53.70 | 43.90 |
| Reliance Industries | 1,247.90 | (-)0.20 | 1,272.30 | 1,231.70 |
| Tata Communications | 1,503.95 | 8.70 | 1,540.80 | 1,476.30 |
| Tata Teleservices Maharashtra | 60.85 | 0.20 | 63.20 | 59.10 |
| Vodafone Idea | 6.95 | (-)8.00 | 7.30 | 6.80 |
| Nifty 50 | 22397.20 | (-)0.70 | 22624.90 | 22263.50 |
| S&P BSE Sensex | 73828.91 | (-)0.70 | 74630.70 | 73369.70 |
End
Reported by Alina Geogy
Edited by Ashish Shirke
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