TMS Ep346: Telecom sector, investment cycle, Q3 results, WHO warning

Before the September 2021 relief package, telecom companies in India had faced a number of challenging years amid mounting fears that the sector would effectively end up seeing a duopoly between Reliance Jio and Bharti Airtel. The year 2022 saw the much-anticipated 5G auction, which opened up new avenues for telcos, but also came with its own set of challenges. Overall, it seemed that the sector was on the path to recovery. But, will that process continue in 2023? Or will it end up losing steam? 

Not just the telcom, other sectors too are expecting some relief from the upcoming Union budget. Economy has opened up. People are travelling like they used to before the pandemic struck. The consumption is rising and the demand for bank credit is also up. So will it lead to the start of an investment cycle? 

The IT sector was one of the key driving forces behind India’s health economic growth. It is set to pass the earnings baton to banks as the season enters its second leg. HDFC Bank will kick off the sector’s results with its numbers on Saturday. Analysts feel the pack, as a whole, is expected to see best in class results this quarter with public sector banks faring better than private peers. The key, however, will be sustainability of the trend in the quarters ahead. 

Meanwhile, a warning from the World Health Organisation (WHO) has stirred a debate around alcohol consumption. It said that any amount of alcohol may have adverse ramifications. Know more about it in this episode of the podcast.