RIL has made a decision to enter into telecom sector, Reliance Jio, will make a big splash in that space.They have the license for pan India coverage of broad band 4 g.This is a game changer, especially when you consider they can roll out quickly , as early as March 2014.The younger brother has laid 33 k kilometers of fiber optic cable through out the country which the elder brother will use and he has given international connectivity too.The tentative pricing says Rs. 500 for a 10 GB account,which will throw the broadband market wide open.The coming spectrum license auction during the first week of February 2014, sees them bidding aggressively and the deep pockets they have, mean it will also look for another pan India license in the voice segment.It is no wonder Bharti and Idea shares are tanking competition just got tougher.What cannot be got through the normal licensing process, will be acquired through M&A activity.Monday's market response will set the future trend for the share.I see the share at 900 level for the mid term and above 1000 for the long term.
TCS vs Infy, this year is going to be the great year for the IT companies.All the major ones have their result in line with expectations including WIPRO which usually tends to disappoint. Now where do they go from here?, TCS will see a steady increase in value of their shares and will try to cross the 3k level as will Infy which will cross the 4 k level.But this year will be a TCS year, they have a very good pipe line which will bear fruit, and the final quarter result and the annual result for Fy 13 will say it all.The tanking of the shares on Friday is a knee jerk reaction, but there will good buying coming up soon and it is now at an attractive pricing. Expecting it to go below 2k again? , that will not happen.Especially in the light of Tata'a pledging TCS shares recently.They will not let the value go down on any account.
Infy will continue to consolidate and get their house in order and meet the challenges or rather the opportunity which lies in the year ahead.The caveat being they stem the loss of their front line resource. The share is on a trajectory for crossing the Rs. 4000 level.
Mindtree, a disappointing quarter, will they recover and go forward or do they become a target for take over. The chances of the later happening is more.I would buy on dips and hold, and nothing like the present when the share is down.
HCL Tech the winner of 2013 which doubled your money, what ever the denials or pleading of ignorance, this company will change hands given the right incentive.The company will go places, with their plans to become a 10 billion dollar company.
Hexaware, will be a flat or disappointing result, do not think it will surprise us.Tech Mahindra...given the sell off on Friday, this share will do well and we could see it crossing 1900 / 1950 in the February futures series, the share looks attractive at the moment price wise.
I will be writing a different post on banks and the so called sector rotation next.Hence, not treated in this post, this is something which people are anxious to know about, rightly so.