Telecom Stocks Outlook
Select stocks seen rising if FPI purchases continue
This story was originally published at 18:51 IST on 6 June 2025
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MUMBAI – Select stocks in the telecom sector, such as Bharti Airtel, may rise further next week if foreign portfolio investors continue to purchase these stocks, analysts said. Telecom company stocks are expected to continue consolidating as the Reserve Bank of India's rate cut is unlikely to have much effect on these companies, as most of them are nearing the end of their capital expenditure cycle, they said.
FPI inflows into Indian telecom stocks surged to a 13-month high of $946 million in May, data on the National Securities Depositories showed. The investment in telecom stocks accounted for 41% of the total overseas investment in Indian equities in May, NDTV Profit reported.
The biggest event in the sector this week was Vodafone Idea reporting its March quarter earnings on Saturday. The debt-ridden company reported a consolidated net loss of INR 71.66 billion for the March quarter, lower than the consensus estimate of INR 72.95 billion and higher than the loss of INR 66.09 billion a quarter ago. The company's top line fell 1% sequentially to INR 110.14 billion. The stock had risen 2% Monday, but erased all its gains through the week to end flat on week at INR 6.92.
Nuvama Institutional Equities cut Vodafone Idea's target price by 12% to INR 7.5 after the earnings. "VIL's subscriber losses have moderated to pre-tariff hike levels, but continue to hinder its recovery trajectory... the delay in debt funding continues to create an overhang about the survival of the company," the brokerage said in its report. It maintained a 'hold' rating on the stock. ICICI Securities also cut its target price by 13% to INR 7 and maintained a 'hold' rating. While the company has started accruing the benefits of network rollout with strong penetration of 5G subscribers, it still has a lower-than-expected adjusted gross revenue market share, the brokerage said.
Vodafone Idea's stock is expected to move in a range of INR 6.5-INR 8.0 next week, a technical analyst at a domestic brokerage said. Bharti Airtel looks bullish on the charts and may rise to INR 1,900 levels soon, the analyst said. The stock ended at INR 1,870 on Friday. Shares of the company have now ended in the green for three straight weeks, gaining over 3%.
In other big news, Elon Musk's Starlink has secured the crucial licence from the Ministry of Telecommunications, CNBC-TV18 reported. The entry of the satellite communications company will not have much impact on existing players such as Bharti Airtel and Reliance Jio Infocomm due to the difference in price points and the difference in services offered, analysts had said.
TOP HEADLINES
* Tejas Networks gets INR 1.23 bln from DoT under PLI scheme
* RailTel Corp gets letter of intent from Motor Vehicles Dept, Maharashtra
* PRESS: Public sector banks unwilling to give fresh loans to Vodafone Idea
* Plan to sell BSNL, MTNL assets worth INR 55 bln to lower debt - Govt source
* Tata Communications integrates new submarine cable system into its network
* Analyst Concall:Planned 4G tower additions to drive Vodafone Idea's coverage
* RailTel Corp selects Techno Electric to set up 10 MW data centre in Noida
* Railtel Corp gets INR 106-mln order from Mahanadi Coalfields
* Earnings Review: Vodafone Idea's loss widens QoQ, tad lower than Street view
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 | 1,870.20 | 0.80 | 1887.70 | 1858.50 |
| Mahanagar Telephone Nigam | 49.83 | 3.70 | 51.90 | 48.60 |
| Reliance Industries | 1443.50 | 1.60 | 1458.50 | 1429.50 |
| Tata Communications | 1713.10 | 2.20 | 1731.90 | 1698.90 |
| Tata Teleservices Maharashtra | 71.12 | (-)2.50 | 73.00 | 69.90 |
| Vodafone Idea | 6.92 | 0.00 | 7.10 | 6.70 |
| Nifty 50 | 25003.05 | 1.00 | 25259.40 | 24543.30 |
| S&P BSE Sensex | 82188.99 | 0.90 | 83036.10 | 80716.60 |
End
Reported by Akash Mandal
Edited by Saji George Titus
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