Telecom Stocks Outlook for the week (08 - 12.10.2012)

[rupeedesk]

Telecom stocks next week are expected to trade with a bearish bias in line with the broad market, which is expected to see corrections after witnessing gains in the past few weeks. Medium-term outlook on telecom stocks remains negative on account of various regulatory issues. Telecom stocks will be volatile ahead of the upcoming 2G auctions. The government will start the 2G auction from Nov 12. Stocks of Bharti Airtel, Idea Cellular, and Reliance Communications will be in focus on Monday as the Empowered Group of Ministers, headed by Finance Minister P. Chidambaram, is expected decide whether incumbent telecom operators should be charged one-time fee for the spectrum they hold for the remaining period of their licence. Telecom department had a few months ago moved a Cabinet note whereby it had suggested that operators should pay auction-determined price for the spectrum they hold prospectively and had suggested several options.

By RUPEE DESK

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