Telecom stocks next week will track the broad market, which is expected to be positive following the decision by the Cabinet yesterday's to implement foreign direct investment in multi-brand retail and allow foreign airlines to buy stake in Indian carriers.
The sector, which has underperformed in the past few months, may see some value buying and consolidation in the near term. If the broad market does not break down from the current level, then telecom stocks are expected to do well.
State-owned Mahanagar Telephone Nigam Ltd has seen building of long positions in its current month futures contract. News about the company's plans to monetise its land banks and rent out its built-up area to generate revenues, have helped lift the stock.
Bharti Airtel is expected to gain in the coming sessions, as the current valuations looks attractive for investing in the stock and further corrections is seen limited.
