Remain underweight in telecom sector, says Dipan Mehta

One should remain underweight in telecom sector, says Dipan Mehta, Member, BSE & NSE.

Mehta told CNBC-TV18, "There is far too much uncertainty in telecom sector as a whole and Bharti Airtel is facing its own set of problem, which are quite unique and distinct from the other Indian telecom companies. I think that although valuations are attractive and the stocks attractive and the stocks have corrected significantly."
He further added, "There is a lot of regulatory overhang and then we will have these auctions also coming through in a few months and that also can have a negative effect on these stocks. So, I would just say one should remain underweight in this sector as a whole and this is typically what happens – sector is doing well and suddenly you have a lot of government interference and a story which was thriving becomes a bit negative from investor’s viewpoint and that’s a real problem in the markets at this point of time where good ideas are just not emerging because of either government inaction or because of certain issues relating to international trends or domestic consumption pattern. So that’s where we are kind of positioned at this point of time. But telecom per se, one needs to give it some more time."