Telecom stocks to remain bearish in medium term: Ketan Kharkhanis

Ketan Kharkhanis, Head of Active Trader Service in an interview with ET Now talks about Idea, RComm, Bharti and telecom sector.

In terms of what we are seeing in the telecom space obviously this is a new jump for Bharti Airtel but if you have to compare the three Idea, RComm and Bharti as an investment proposal right now what would you choose to be in?

See we have seen in the telecom sector historic low tariffs coming into play and also we have seen that the 3G spectrum auction where all the companies have bid very very aggressively. So I think the negatives are largely factored in into the stock prices.

So it is unlikely that we may see any deep cuts into this particular sector and any of the three stocks that you are mentioning. But if you have to choose particular stock out of these three, I would still go for Bharti, because given a strong balance sheet cash flows, I think this a contrarian view on this stock with a probably 12 to 18 months we can definitely yield around 13% to 35% upside. But in the medium term the trend for telecom sector remains to be sideways or bearish.