Vodafone Idea stock continued its gaining streak in the fourth consecutive session on hope of receiving a revival package from the government after Q2 loss and announcement of hike in tariff from December 1. Vodafone Idea share price opened with a gain of 9.97% at Rs 6.62 today compared to the previous close of Rs 6.02 on BSE. Subsequently, the Vodafone Idea share gained 31.72% to hit a high of Rs 7.93 on BSE.
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There was huge volume seen on the counter with 695.68 lakh shares changing hands amounting to turnover of Rs 52.96 crore. Nearly 36.10 lakh shares were bought against 47.85 lakh shares sold on BSE. The mid cap stock has gained 165.08% in last four sessions. However, the past year has been bad for the telco with Vodafone Idea share losing 70.18% and falling 66.54% since the beginning of this year.
In comparison, the benchmark Sensex gained 14.51% during the last one year and 12.62% since the beginning of this year. The stock has been in news after Supreme Court passed a ruling on payment of average gross revenue (AGR) dues for Bharti Airtel and Vodafone Idea. The company estimated liability of Rs 27,610 crore related to licence fee and Rs 16,540 crore for spectrum usage charges in Q2 based on Supreme Court's judgement.
Also read: Reliance Jio takes cues from rivals, to hike tariff in few weeks
The mid cap stock fell 19% in early trade on November 15, but then rose as much as 56% from the day's lows after reports emerged the telco was in active talks with the government seeking financial relief following the Supreme Court ruling. The stock which closed at Rs 2.95 on November 14 ended 24% higher at Rs 3.68 next day when stock market took into account the dismal earnings for Q2.
It rose 31.86% to Rs 3.89 intra day on November 15 on BSE. The stock also saw high positive sentiment on Tuesday after Vodafone Idea said it plans to raise mobile service rates from December 1. Vodafone Idea stock rose up to 29.75% intra day to Rs 5.80 compared to previous close of Rs 4.47 on BSE yesterday.
By Aseem Thapliyal