We are overweight on the telecom sector, says Vijai Mantri

In a chat with ET Now, Vijai Mantri, Managing Director & Chief Executive Officer, Pramerica Mutual Fund shares his views on the telecom sector.

ET Now: What is the sense that you are getting about telecom sector?

Vijai Mantri: In the last regime of NDA government, there were a lot of regulatory challenges about the telecom industry. The business model of many telecommunication companies is very well entrenched.

In order to play rural or urban consumption story, telecom will be a very interesting space. In March 2009 when Nifty was 2600 levels, Bharti stock is still available at almost the same price and Nifty has today reached 6500 levels.

In last six years, the earning is completely ignored by the market because of various challenges in the telecom sector. If one has to focus on playing on the reform and the next government coming, then the telecom sector could be very interesting idea. As on date, we are overweight on the telecom sector.