Expect it to continue downwards to around 54 Rs. or so. This selling pressure is due to TRAI regulations and the pinching on profits due to the new GSM rate schemes. Though Idea seems to be a front runner in telecom it`s valuation now declines due to overall returns decreasing. Expect all telecom stocks to drop. Remember Idea`s IPO was 75 and its initial loss making year has not helped its overall forecast.
Obviously on a 3 month horizon stock value will increase, however in the near short term of 40 days, expect it to remain under 65 Rs.
I think ,Idea has no other option but to go for a merger with another player. That will give a fantastic bounce. I think it is currently presenting the best opportunity. No doubt, I will go for it. Even otherwise stocks at suchlow prices bounce back even for a short period. We should Take the advantage.
dear GUEST it is execellent idea !! an idea can change life!! but mnagement is very capable people I do`nt think they will allow that happen.After your advice Iwant to cclosely follow the stock and buy more quantity at lows GOOD IDEA!!!
Sometimes, I feel surprised that even terrible loss making companies with no future outlook in sight(refer airline companies ala Jet Airways) quote at fantastic prices while profit making telecom companies are being downgraded recklessly on the sheer premise of a highly competitive outlook (which is there for that matter in any industry or sector today)leading to absurd valuations and predictions from gentlemen and gentleladies alike. To presume that Mittals and Birlas are doing big business for making losses or for the cause of serving the great ideals of Mr Raja, the telecom minister, is a little undigestable, unless there is some great play at work by vested interests and overseas groups to corner the shares of these bluechip companies at throwaway prices, ahead of the crucial 3G event. At Rs. 50 for a Rs. 10 share of Idea, it is nothing but a steal, if you compare this to any other sensex or nifty share on any yardstick. Atleast I am pretty convinced with my ideas on IDEA.
| NIFTY 
