Telecom Stocks Outlook for the week (25-29.6.2012)

[rupeedesk]

Telecom Stocks Outlook for the week (25-29.6.2012)

The movement in stocks of telecom service providers is likely to be stock-specific next week, but long-term bias remains negative as volumes will be low on regulatory uncertainty and weakness in the broad market. The telecom sector was expecting some clarity to emerge on spectrum auction norms this week, but the Empowered of Group of Ministers headed by Finance Minister Pranab Mukherjee has been deferred indefinitely. The Department of Telecommunications will now present a Cabinet note on the spectrum auction norms, which would include the reserve price for the 1800 MHz and 800 MHz band. Stocks of Bharti Airtel are expected to trade positively as investors have taken long positions in the futures and options segment. The high open interest in Bharti Airtel's 340 call option and 300 put option indicates that the stock is likely to trade in this range in the coming sessions. It expect the stock to pullback in the short-term, but the bias for the long term remains weak.