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Informist, Friday, Aug. 29, 2025

MUMBAI – Shares of telecommunication companies are likely to continue consolidating next week, as the sector still awaits fresh cues, with the overall market's performance providing guidance for the sector. Reliance Jio Infocomm's plan to list early next year was the biggest news in the sector this week.

Reliance Industries is likely to list its telecom subsidiary by the first half of 2026, its Chairman Mukesh Ambani said at its annual general meeting Friday. "We are aiming to list Jio by the first half of 2026, subject to all necessary approvals. I assure you that this will demonstrate that Jio is capable of creating the same quantum of value as our global counterparts," Ambani said. 

Bharti Airtel is likely to keep consolidating this week amid a lack of trigger, analysts said. "Bharti Airtel is trading in a tight range (INR 1,845-INR 1,960 spot levels) for the past couple of weeks... either side break from this range will set the tone for the next directional move," said Vipin Kumar, assistant vice president of equity research and senior derivative analyst at Globe Capital Market. 

On the other hand, Vodafone Idea still looks technically weak with the bias remaining negative. "Vodafone is also following the footprints of its larger peer (Bharti Airtel) as it is trading in a wider range of INR 6-8... a break from this range is required for the next directional move," Kumar said. 

"The Street is optimistic about telecom ARPU (average revenue per user) improvement, factoring in 11% ARPU CAGR over FY25-28, while extrapolating the recent trends... we believe that the sharp ARPU recovery in India since FY20 is largely on the back of a 40% drop in the industry size over FY16-20, given that Reliance Jio (RJio) has entered the space with aggressive pricing," Emkay Global Financial Services said in a report.

However, expensive valuations and extraordinarily high expectations have made the brokerage cautious on the sector. "We believe the risk-reward for Indian telecom players is unfavourable, with the Street building optimistic growth forecasts and given the expensive valuations... hence, we assign REDUCE to Bharti Airtel and SELL to Vodafone Idea; we initiate coverage on Bharti Hexacom with REDUCE. Indus Towers is our only BUY in this space, given its modest growth estimate and attractive valuations," Emkay said.

TOP HEADLINES

* Delhi HC stays recovery of income tax penalty from Vivo, Oppo till Sept 23
* HFCL arm gets INR-1.02-billion order from Indian Army to supply equipment
* Vodafone Idea says got no message from govt about no further relief in dues
* 3M India OKs appointing Aseem Joshi as president, MD designate from Oct 13
* RailTel Corp gets INR 132 mln order from Rajasthan govt body
* NDTV Profit: Govt may slash AGR dues for Bharti Airtel, Vodafone Idea

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 Akash Mandal

Edited by Saji George Titus

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