DD Sharma

Vice-president, research,

Anand Rathi Financial Services

We are not positive on the telecom sector. As

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expected, the third quarter results confirmed poor performance by telecom operators, mainly due to a fall in margins on account of the price war between major rivals. It may take two to three quarters for the sector to consolidate. The revival of the sector will depend on the regulatory bodies. Till now, our telecom regulations do not let acquisitions to happen easily; which may bring hurdles and result in more delays in the process of consolidation. The telecom stocks have already declined a lot. So there are fewer chances that they may drop steeply. We feel unless big telecom operators take over some of the smaller players, the sector will remain under pressure. We are not bullish on the sector. We don’t recommend any scrip from the sector.