Now its time for Telecom Stocks to get battered. Vodafone already had a tussle with Tax issue, Reliance communication is in deep trouble for Credit crunch. After failure in Rcom's IPO for Flag Telecom in Singapore, it knocked the doors of SBI for 3000 Crore Loan. Now Airtel Results shows that its suffering to sustain on both top line and Bottom line.
During the time of 3G action telecom operators across india has bid for it to boost their Revenue - as they faced a neck to neck competition in the sector. It seems Private Operators had paid 51,000 Crores for bidding 3G - hopping that may increasing their profit. Many got license and started their service - now realized that they can't do nothing as Revenues are not increasing.
Result shows that the Interest shoot up more than the Revenue.
Rcom had a Debt of 28 times more than their Revenue.
Tata Tele too in trouble as it lost almost 10% of its customer in last 1 Year after it ties with
Airtel now paying a Interest of 4.2% which was 2% previous Year. Now Bharti Airtel is planning for a IPO - Bharti Infratel - its tower Unit.
Govt. had a Major role in Destroying this Telecom sector via - 2G Scam.
>>>>>Nifty<<<<<
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As wrote on Monday - Nifty today touched 5376 and fell down to 5331. As per Channels marked on Chart - every time when the channel end,Nifty retraced atleast 38.2% or 50% once a sub wave is completed. A fall below 5270 may confirm further weakness.
Cheers!!!
