Dialing out of Bharti

Credit Suisse became the latest foreign brokerage to downgrade Bharti Airtel's stock. Following the downgrade, shares of India's top telecom service provider fell 3.85 per cent to Rs 248.70 on the BSE, its lowest close since October 2006. "Despite the recent sharp correction in Bharti’s stock price, we believe that risks from key events over the next 12 months are not fully understood or appreciated by the Street. In particular, 2G spectrum auctions over the next four to six months and RIL Infotel’s launch over the next 12 months pose significant risks to the business models of incumbent telcos," Credit Suisse analysts said in a report. Other foreign brokerages like Morgan Stanley, Goldman Sachs and Standard Chartered have also downgraded Bharti Airtel's stock after it posted disappointing quarterly earnings on August 8. Since its first-quarter earnings announcement, Bharti stock has slumped 15.35 per cent, compared with a 1.39 per cent rise for the Sensex during the same period.(Click on graphic)