 "Telecom shares trade weak; Bharti Airtel down 3% on Jio announcement")
Shares of telecom companies trading mixed on the bourses after Reliance Industries chairman Mukesh Ambani announced Jio reached 100 million subscribers and launched the Rs 303 per month plan from April 1.
According to the tariff plan, Jio will match the highest selling tariff of other operators and provide 20% more data than what other operators provide. CLICK HERE TO READ FULL REPORT.
Bharti Airtel was trading down 2.6% at Rs 366 and Idea Cellular was down less than 1% at Rs 108, while Reliance Communications trading 3% higher at Rs 36 on the BSE. Reliance Industries (RIL) too up nearly 1% at Rs 1,083.
"The telecom stocks would have reacted more, had Jio extended the free data scheme but the company’s announcement to apply tariff from April 1 will prove positive for the telecom stocks," said AK Prabhakar, Head of Research at IDBI Capital.
He also added that post Jio's entry, all major players are trying to consolidate which will also be good for the street. The merger talks between Idea and Vodafone, RCom and Tata Tele will reduce the number of players and hence, bring back the pricing power.
Since telecom stocks have been very cheap comparatively on growth and competitor concerns, the expert said that Bharti Airtel and RCom will be the best picks.
The stock of Bharti Airtel (up 17%) and Idea Cellular (52%) had outperformed the market by gaining more than 15% each in past one month as compared to 6% rise in the S&P BSE Sensex till Monday. RIL was up 4.7% during the same period.
According to the tariff plan, Jio will match the highest selling tariff of other operators and provide 20% more data than what other operators provide. CLICK HERE TO READ FULL REPORT.
Bharti Airtel was trading down 2.6% at Rs 366 and Idea Cellular was down less than 1% at Rs 108, while Reliance Communications trading 3% higher at Rs 36 on the BSE. Reliance Industries (RIL) too up nearly 1% at Rs 1,083.
"The telecom stocks would have reacted more, had Jio extended the free data scheme but the company’s announcement to apply tariff from April 1 will prove positive for the telecom stocks," said AK Prabhakar, Head of Research at IDBI Capital.
He also added that post Jio's entry, all major players are trying to consolidate which will also be good for the street. The merger talks between Idea and Vodafone, RCom and Tata Tele will reduce the number of players and hence, bring back the pricing power.
Since telecom stocks have been very cheap comparatively on growth and competitor concerns, the expert said that Bharti Airtel and RCom will be the best picks.
The stock of Bharti Airtel (up 17%) and Idea Cellular (52%) had outperformed the market by gaining more than 15% each in past one month as compared to 6% rise in the S&P BSE Sensex till Monday. RIL was up 4.7% during the same period.
| Company | 20/01/2017 | 20/02/2017 | % chg | LTP | % chg |
| Idea Cellular | 71.50 | 108.70 | 52.0 | 108.15 | -0.5 |
| Bharti Airtel | 320.55 | 375.65 | 17.2 | 366.05 | -2.6 |
| Tata Comm | 674.15 | 749.65 | 11.2 | 751.55 | 0.3 |
| Rcom | 31.20 | 34.60 | 10.9 | 35.55 | 2.7 |
| Reliance Ind | 1025.70 | 1073.70 | 4.7 | 1081.10 | 0.7 |
| S&P BSE Sensex | 27034.5 | 28661.58 | 6.0 | 28686.1 | 0.1 |
| LTP : Last traded price on BSE in Rs at 02:36 pm | |||||
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%