Vodafone Idea shares fall 6% on report of India challenging arbitration ruling in Singapore

Vodafone Idea share fell 6% today after Modi government challenged verdict by an international arbitration court that ruled India's demand of Rs 22,100 crore in taxes from Vodafone using retrospective legislation was in "breach of the guarantee of fair and equitable treatment" in Singapore.

Shares of Vodafone Idea fell 5.87% to Rs 9.94 against previous close of  Rs 9.56 on BSE. The telecom stock has fallen after two days of consecutive gain. Vodafone Idea share stands higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.  

The share has gained 59.81% in one year and gained 64% since the beginning of this year.

Market cap of the firm rose to Rs 29,022 crore. Later, the share closed 4.36% lower at Rs 10.10 on BSE.

In September, British telecommunications company Vodafone Plc won an arbitration case against Indian government.

The government challenged the Vodafone arbitration award in Singapore on December 21, Reuters reported citing a government official. However, it has not issued any official statement as of now. The move comes two days after India lost another arbitration case related to a tax dispute with the UK oil major Cairn Energy Plc.

The international arbitration tribunal in its verdict asked India to pay Rs 8,000 crore as damages to Cairn. The government recently discussed the Hague-based Permanent Court of Arbitration (PCA) award in the Vodafone tax dispute case at the highest level, including Prime Minister Narendra Modi.

Meawnhile, extending gains for the third straight session, Sensex ended 529 points higher at 46,973 and Nifty gained 148 points to 13,749. During today's session, Sensex has hit an all-time high of 47,053 and Nifty logged a lifetime high of 13,771.