Sanity seems to be returning back in the telecom sector after very long time. The consecutive failures of expensive airwaves auction, winding down of operation of Uninor and Siestama Shyam in select circles and gradual increase of call tariffs have made some of the stronger players like Bharti Airtel and Idea Cellular come back into the radar of investors and brokerage houses.
Morgan Stanley has raised its rating on Bharti Airtel Ltd to "overweight" from "equalweight," while Nomura also raised its rating on Bharti, but to "neutral" from "reduce", citing a recent share price drop.
Bharti Airtel being the largest telecom company in India with almost one third revenue market share, is expected to recover first and most with environment becoming more conducive for the operators.
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