It is the last day of the week, and all the telecom stocks are in the red. It is not just the telecom stocks, but also the indexes including NIFTY and SENSEX in the negative. After seeing a good Thursday, Vodafone Idea’s stock (listed as Idea) is 5.41% in the red (at the time of writing), trading at Rs 10.50. This comes after the board of the telco has approved for raising up to Rs 14,500 crores on Thursday.
Reliance Industries Limited (RIL), the parent company of telecom giant, Jio, is trading at 1.63% in the negative at Rs 2340.20. Bharti Airtel has seen quite a dip trading at Rs 656.80, which is 2.27 in the negative.
Market Seems to be Bearish
Stocks of almost every company and sector are in the red on Friday. This could be due to the global scenarios that the Russia and Ukraine war is creating. However, the telecom stocks are expected to recover in the short-to-medium term.
Telecom services are the backbone of the country. Regardless of what may come, the government and the businesses will invest in scaling the digital infrastructure of India. This will be the leverage for telecom operators as digital connectivity has become an absolute necessity for almost every Indian.
The coming week will be interesting for the market. Vodafone Idea Limited (VIL) is expected to receive a fresh capital infusion of up to Rs 4500 crore from its promoters’ subsidiary companies once the shareholders approve the move. VIL has scheduled a special general meeting of the company on March 26, 2022, for the same.
The 5G spectrum auctions are not very far as the Telecom Regulatory Authority of India (TRAI) is working on submitting the recommendations to the Department of Telecommunications (DoT) by the month-end.
Very soon, the private telecom operators are also going to have competition from the state-owned telecom company, Bharat Sanchar Nigam Limited (BSNL), in the 4G mobile services.
