Avoid telecom stocks: Sudip Bandyopadhyay, Destimoney Securities

In a chat with ET Now, Sudip Bandyopadhyay, MD & CEO, Destimoney Securities Pvt. Ltd., gives his views on telecom sector


Yesterday's news about Sunil Bharti Mittal seems to have plagued the Bharti Airtel stock. Can it go down further on that alone?

I do not think that the Bharti Airtel stock can go further on this particular news. It is unfortunate and probably was avoidable but the stock has its own reason to go down. The company has debt burden and it is also underperforming in African operations. Plus there is the regulatory confusion. All this put together there are enough reasons for Bharti to not perform well in the market and investors to shun the stock at this stage. The entire telcom sector looks weak and it is better to avoid this sector as things stand now. It is unfortunate that the ruling yesterday pulled the stocks down, but that is about it. There is nothing more to read into that.