Idea share price: Vodafone Idea always a commercial share, better bet on Bharti Airtel


“The markets are not ready for a hawkish comment from the Fed. Investors and short-term traders should be concerned that the commentary will no longer be hawkish and create volatility, ”says Sandip Sabharwal, analyst,

Sooner or later, the market will have to initiate a change in interest rate trajectory by the Fed or the RBI. What is your opinion?
The movement of interest rates must be there and with inflation which is at its current level, headline inflation in India is underestimated due to the composition of the index and to that extent it is much. more volatile than most other parts of the world as almost 50% is food and food spikes can create up and down inflationary movements. But based on the aggregate basket, inflation in India is currently quite high. While most markets were concerned about credit comments earlier, but now with the Fed meeting approaching, they are pretty bullish and not really upset.

The movement in most of the world markets shows that we will be able to take this in stride. However, with inflation levels in the United States, it will be difficult for the Fed to tolerate it. I’m not sure what kind of comment will come from the Fed, but markets aren’t ready for an aggressive hawkish comment. Short-term investors and traders should be concerned that the comment may be more hawkish and create volatility.

Normally December is not really a bad month for the markets and normally the markets tend to be either up or slightly down in December when activity is down. This December is going like this, but in 2022 it might not be as easy to make money as this year.

Vodafone Idea shares are at a new 52-week high. Does it really change your view of Idea? Does it become an investment from a simple trade bet?
Idea will remain a trader’s action and can be a retail investor’s action for a very long time until it is well established as a company that can reduce debt, report sustainable profits, etc. There is a definite structural change in the industry now with Reliance Jio jumping on the rate hike bandwagon. This raises the question mark over survivability against Vodafone Idea. He’s going to survive and we’ll have to see if he thrives. So directionally, the feedback should still be positive for Vodafone Idea. But it’s hard for me to place any value on the stock price, given the huge debt levels and the fact that 5G is coming and the need for investments will increase again.

The preferred choice in the telecommunications sector remains Bharti. With its fundraising for the rights issue, Bharti’s deleveraging will be greater than that of Vodafone Idea, which is rather positive. So, Vodafone Idea will be a commercial action, but Bharti remains a preferred bet even at high valuations in the overall market. Bharti Airtel over the next year could still offer 20-30% returns.


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