What should be the way ahead for telecom stocks -- should you hold, buy more or sell on rallies? To discuss all this and more, Kshitij Anand of Moneycontrol spoke to Shailendra Kumar, CIO at Narnolia Investment Advisors Ltd.
Telecom stocks witnessed a big rally on November 15 after media reports suggested that the government would step in to help the ailing sector.
The S&P BSE Telecom index rallied by over 8 percent, led by gains in Idea Cellular which rallied 24 percent, followed by Bharti Infratel which gained 9.1 percent, and Bharti Airtel closed with gains of 8.4 percent.
Telecom stocks saw the traction after sources had said that the panel of committee of secretaries (CoS) was mulling floor price on data and voice tariffs and had sought recommendations from Department of Telecom (DoT) on setting a minimum charge for all tariffs for telecom players while assessing the impact it would have on telecom operators, CNBC-TV18 reported.
Bharti Airtel, on November 14, expressed doubt about its ability to carry on operations in the aftermath of the Supreme Court's judgment on the definition of adjusted gross revenue (AGR).
The company posted a staggering Rs 23,045 crore net loss for the second quarter ended September 30, due to provisioning of Rs 28,450 crore in the aftermath of the Supreme Court ruling on statutory dues.
Vodafone Idea reported a record loss of Rs 50,921 crore for the September quarter, compared to a loss of Rs 4,947 crore recorded in the year-ago period.
The company may be on the brink of collapse if it has to pay $4 bln in statutory dues. It has sparked concerns among investors over the company's inability to service the debt.
What should be the way ahead for telecom stocks - should you hold, buy more or sell on rallies? To discuss all this and more, Kshitij Anand of Moneycontrol spoke to Shailendra Kumar, CIO at Narnolia Investment Advisors.Tune in to this special Moneycontrol podcast to find out more.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.