Q: Idea went into a bit of a shell after its numbers. But yesterday was an extremely strong day?-->
A: CNBC-TV18's stocks editor, Udayan Mukherjee - It was but my guess is looking at valuations that this is more to do with Idea’s price and the fact that it comes into the Nifty on the December 12, 2007. So this might be like we saw with Unitech earlier, a bit of a pre-Index inclusion pop, which is happening in Idea.
It’s a Rs 130 stock so it’s a handy price to trade around in for the punter and that’s why it’s going up. If one just looks at the reality on the ground Bharti is sulking for the last many weeks, because of the spectrum issues and the same spectrum issues are actually very negative for Idea as well.
ARPU’s are going down and Idea can stand to lose quite a bit if the realizations and margins come off significantly in the market. Idea’s valuations are at a slight premium to Bharti now, even after the correction and at the same level as Reliance Communications (R Com).
..more
A: CNBC-TV18's stocks editor, Udayan Mukherjee - It was but my guess is looking at valuations that this is more to do with Idea’s price and the fact that it comes into the Nifty on the December 12, 2007. So this might be like we saw with Unitech earlier, a bit of a pre-Index inclusion pop, which is happening in Idea.
It’s a Rs 130 stock so it’s a handy price to trade around in for the punter and that’s why it’s going up. If one just looks at the reality on the ground Bharti is sulking for the last many weeks, because of the spectrum issues and the same spectrum issues are actually very negative for Idea as well.
ARPU’s are going down and Idea can stand to lose quite a bit if the realizations and margins come off significantly in the market. Idea’s valuations are at a slight premium to Bharti now, even after the correction and at the same level as Reliance Communications (R Com).
..more
Comments