Regulatory uncertainties holding the rally in telecom sector: BP Singh

In a chat with ET Now, BP Singh, Executive Director & CIO-Equities, Pramerica Mutual Fund, shares his views on Telecom sector.

ET Now: Every economy related sector got rerated but the telecom sector is still under performing Indian markets. Why telecom stocks are not bouncing back?

BP Singh: Telecom sector had some regulatory uncertainties in the recent past and even with the new government in place we have not come across any major discussion on this particular sector.

Companies are consolidating and restructuring themselves. They are selling out some of the businesses and deleveraging themselves. If the regulatory uncertainty gets cleared this particular sector will perform well in future.

We are positive on this particular sector and we own these particular stocks. They have not performed yet but in our opinion it is a matter of time when they will start participating in this rally.