Bharti Airtel shares fell in the morning session on Monday after the Adani Group announced its entry into the 5G spectrum auction. Bharti airtel stock opened lower today and went to intraday low 661.15 in morning deals on NSE, fell close to 5 percent from Friday’s end 695.15 each level.
According to Share Market According to experts, Bharti Airtel shares were sliding due to the short-term negative sentiment that emerged after the entry of Adani Group in the 5G telecom spectrum auction. He said that the Adani group has not said that they will enter the telecom sector, but after their entry in the 5G auction, it is certain that even if they do not enter the telecom sector, they will have their own. After the arrival of 5G in India, telecom infrastructure and they will not take the services of telecom companies.
How did Adani Group enter? 5G Spectrum Auction Ravi Singhal, Vice President, GCL Securities said, “Adani Group’s entry into 5G spectrum auction is a negative news for Bharti Airtel and Reliance Jio as telcos lose a good amount of corporate business. Even if Adani decided against entering the telecom business, many IT companies have also applied for 5G spectrum auction as they are looking for their own private telecom infrastructure instead of relying on two or three companies that will That the kind of telecom infrastructure they are capable of providing is needed after 5G comes to India.”
Echoing Ravi Singhal’s views, Puneet Patni, Equity Research Analyst, Swastika Investmart said, “Adani Group’s entry into the race for 5G spectrum has shaken the investors of Bharti Airtel Limited and the stock witnessed heavy selloff today. The move is expected to increase competition, especially in the enterprise services segment; however, there will be no impact on the consumer side of the business as Adani Group clarified on Saturday that it intends to enter the telecom business for consumer communication services. No, rather it is to use 5G spectrum, if given for private network solution. Nevertheless, we are positive on Bharti Airtel Limited as the EBITDA margin of the company is expected to increase due to further increase; The ability to generate free cash flow will further improve and leverage on the balance sheet. Additionally, the financial position remains strong and the outlay in the upcoming 5G auctions is expected to be reasonable.”
On suggestions from stock market investors regarding Bharti Airtel shares, Ravi Singhal of GCL Securities said, “Bharti Airtel has strong support 620 at each level while its placed at equally strong resistance from 700 720 per share level. if the stock falls 740 level, then it would be a good buy area to keep the stop loss 720 each level.”
Disclaimer: The views and recommendations given above are those of individual analysts or broking companies and not of Mint.