Kotak Institutional caution on telecom sector

Excerpts from Bazaar on CNBC-TV18 Watch the full show » Nifty BSE | NSE 10/02/12 Are Mutual Funds betting on Nifty?

Sandeep Bhatia , ED and Head of Sales, Kotak Institutional Equities advices to stay caution on the telecom sector.

Bhatia told CNBC-TV18, "Kotak has been cautious on the telecom sector well ahead of most other people. I think we have to give telecom sector some time. We are going to go into a phase of extreme discontinuity coming through in terms of the market pecking orders. There are a couple of large entrances with pick pockets, which are coming in. In addition to that we have players like Bharti Airtel . I think we would see continued market cap erosion in the telecom sector for sometime until we see consolidation coming through. Consolidation should basically start probably in the end of 2010 and from then on we can see how Bharti is emerging. So from a fundamental perspective we would advice caution on the telecom sector."