Etisalat deal may boost RCOM

ET Now spoke to Gajendra Nagpal, CEO, Unicon Financial Solutions, on his views on the telecom stocks.

ET Now: What's your assessment of Reliance Communications?

Gajendra Nagpal: I do believe that at this time things are little different and Etisalat is fairly close to acquiring 26% stake in the company. We have been hearing about the commitment and if you go back to the time of MTN-Bharti deal, the government had come under a lot of criticism in the sense of not allowing free cross border acquisitions.

We had known that Indian companies were going out and wanted to acquire the companies abroad and wanted to enhance their visibility and global presence. I think at this time the government is far more liberal towards these companies.

I believe that Etisalat deal is going to go through this time and that is probably why the stock has been up by 2.5%-3%. This time the uptick looks more credible than in the recent past.