View on Telecom Sector

Telecom Sector is likely to be underperformer for next couple of quarters.

There are some reasons behind this.
As we know most of the telecom operators like, airtel, idea, vodafone , reliance comm are now forced to adopt Pay per second plan
by TRAI. This will impact their margins at least by 20%. Also this sector is facing lot more competition from new players like Aircel, Telenor.

I don't think so these companies are likely to post good results any time soon.

Also if we'll take a look at the history Bharti Airtel is the only stock which is multi-bagger. Apart from that none of the stocks have rewarded investors with good returns.

Idea is still trading just above its IPO price.

Now what the investor should do? As Warren Buffet says buys the stocks which no one is buying due to temporary problem in the sector/company with good fundamentals.

These companies are undergoing with earnings downgrade and lot of negative news. So just wait for the market to digest all these news.
There's likely to be good opportunity after two quarters in this sector.

As we know there's lot more action on the internet platform. New revenue model is likely to come from that segment for the telecom sector.
3G Spectrum distribution is already going on for the companies.

For now wait for all these factors and do your home work before getting into the stock where you see clear visibility of earning.

I would advise to track idea and get into it at the right price.

Hope this will clarify some of your perspective on the telecom sector.

Happy Investing!!