Nilesh Shah, managing director (MD) of Kotak Mahindra AMC, on Friday said that regulations have hurt the telecom sector.

“All of us can expect that the regulations and policies will be pro-industry and pro-growth, but we have been receiving multiple shocks over,” he told CNBC-TV18 in an interview.

Shah said it is fair to assume that the telecom sector is close to becoming a duopoly. “Going forward, in the telecom market, if there are 2.5 players then certainly there will be pricing power,” he said.

He added that leaders will get pricing power and consumers wouldn’t mind paying more since they’re addicted to data usage.

Speaking about markets, he said, “We are right now seeing ‘Triveni Sangam of money, sentiment and fundamentals coming together and hence there will be some corrections, but the overall market should continue.”

He further said that there is a need to track the quality of initial public offerings (IPOs).

Shah pointed to the rush of infrastructure IPOs in 2007-08 that had promised a rosy future but the actual delivery was fairly poor. “Today, when we see IPOs coming, it does create a scare but the quality of IPO which is coming, there could be exceptions here or there, but by and large we are seeing good quality businesses coming. So, I will keep a watch on the quality of IPO; like 2008, if the quality deteriorates then there will be a cause of worry,” he added.

For the entire interview, watch the video

(Edited by : Kanishka Sarkar)