Telecom stocks will next week eye the outcome of the likely Union Cabinet decision on the proposed spectrum auction modalities, which includes the recommendation on spectrum reserve proposed by the Empowered Group of Ministers, headed by Home Minister P. Chidambaram. According to an official of the telecom department, the final note on spectrum auction norms is under process and is likely to be placed before the Cabinet early next week, and may be taken up for a decision during its weekly meeting. The EGoM is learned to have recommended a base price in the range of 140-160 bln rupees for the auction of 5 MHz of spectrum in the 1,800 MHz band, down nearly 23% from Telecom Regulatory Authority of India's proposed 181.1 bln rupees. The base price for auction of spectrum in the 800 MHz band has been recommended at 1.3 times the final base price for the 1,800 MHz band.
Investors will also eye the Apr-Jun earnings of OnMobile Global to be announced on Tuesday. For the quarter, the company is seen reporting a consolidated net profit of 154 mln rupees on revenues of 1.87 bln rupees. International revenues to continue posting significant growth in Q1FY13 (Apr-Jun), while the domestic revenues are expected to remain subdued. Stocks of OnMobile Global are expected to trade at 28-41 rupees next week.
(www.rupeedesk.in)
