What is Reliance Jio?
4G network that offers high-speed mobile internet at very affordable price.
How has market reacted to the launch of Reliance Jio?
— Raj Kundra (@TheRajKundra) September 1, 2016
Why there is worry?
— Karthick Sridharan (@Karthick2668) September 2, 2016
The best opportunity comes when there is extreme pessimism on the street...
The Launch of Reliance Jio is excellent news for Telecom Industry. Here's the reality - only 16-18% of the total population use internet on mobile.
Reliance Jio will expand the market size for data consumption like crazy over next few months because of its sheer scale and size and this will only help existing players. Remember what Reliance Monsoon Hungama did to voice mobile telephony way back in 2003. Also, as the industry shifts to serve Digitized economy, Data will become the new Petrol. All it required was a major push and one can hope - Reliance Jio launch will be that push. Once people start consuming data - then they will demand service levels and there will be market for every player
Bharti Airtel stock- the industry leader has not performed for more than 8 years now and you never know - this launch of Reliance Jio might help the stock to form a bottom for long long time to come. In a digitized economy - data is the Oil and market size is unlimited. An established player with a good industry knowledge will benefit from this boom. I will be surprised if Bharti stock tanks below Rs. 300. Fundamentally, it appears this is not the time to be bearish but bullish on existing established players. Please do not invest based on what I have written. Please do your own due diligence and apply your own logic. I am just sharing one perspective
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers