The 3.2% slip in Bharti Airtel shares in early trade on Friday was attributed to promoter Bharti Telecom having sold a considerable stake in the company through a block deal, which was reportedly worth thousands of crores. It put huge selling pressure upon the stock despite the larger indices being calm.

Airtel Stock Falls 3.2%

Promoter stake sales usually create some concerns about long-term sentiments, but market analysts in this case interpret that sometimes- these stock sales may be directed toward raising capital for other investments, or for debt restructuring purposes rather than being taken as a signal of weakening fundamentals for the company.

The Position Where Airtel Stands
Bharti Airtel still remains one of the premier telecommunications operators in India, with a strong subscriber base, network set-up of 4G/5G rollout, and steady growth in Average Revenue Per User (ARPU). In its last quarterly results, the company reported decent profit margins and continued to maintain market leadership in some key circles. The company is also expanding digital services, broadband, and fintech ventures to add diversity in terms of revenue generation.
Experts Views: Buy, Sell or Hold?
Buy: Analysts bullish on Airtel suggest treating this fall as a temporary dip that presents a buying opportunity; they cite Airtels strong fundamentals, market share and growth prospects ahead.
Hold: Some experts prefer to ‘wait and see’ and advise investors to hold their positions until the stock stabilises and we get firm cues from the market.

Sell: A small but vocal band of market watchers are urging profit booking, particularly for short-term traders, lest they become embroiled in volatility.

ALSO READ: Stock Market Strategies: 8 Stocks You Should Watch Today

While the promoter selling has frightened those weak in spirit, business-wise everything remains solid. Long-term investors may treat the dip as an entry point; the short-term trader might now just watch for price stability ahead of any decisions.

Share

• 
• 
• 
• 
• 
•