The reports of the committee of secretaries, which was formed by the government to consider relief for telecom companies, being disbanded would pull down the momentum in the stocks from a near-term perspective, said Rajiv Sharma, head of Research, SBICAP Securities.
"If the reports of this being disbanded are true, then there will be disappointments and it may pull down the momentum in the stocks from a near-term perspective," Sharma said in an interview with CNBC-TV18.
He, however, said "it is not over till the time it is over".
"I believe there are a couple of months more to go and there is a review petition and it is very easy to be seeing that these payments will be difficult. If I link this to finance minister’s (FM) statement for 3-player market structure, we can still hope that something still could be coming,” he added.
Speaking about the vertical rally in Vodafone Idea and Bharti Airtel, he said, “There have been two things which are driving the share price run-up. One has been the possible tariff hikes... and the possible relief coming from the committee of creditors (CoC) particularly on the adjusted gross revenue (AGR) issue.”
Sharma has a 'buy' call on RIL while he has a 'hold' call on Bharti Airtel with a target price of Rs 415 per share.Disclosure: RIL, the promoter of Reliance Jio, also controls Network18, the parent company of CNBCTV18.com.