Vodafone Idea shares rose 39% in three sessions; here’s why

Shares of debt-ridden telecom operator Vodafone Idea Ltd rose for the third straight session today amid reports that said the government was likely to sell its 33% stake in Vodafone Idea to tech-billionaire Elon Musk and his satellite internet venture Starlink collaborating with the carrier. BSE and NSE have sought a clarification from the telecom service provider on the same from the third largest telco in India to which the firm is yet to reply.

In the current session, the Vodafone Idea stock rose 4.64% to Rs 17.78 on BSE. The stock closed at Rs 13.24 on December 28. Since then the stock has zoomed 39% in three sessions. Market cap of the firm rose to Rs 82,414 crore. Total 188.05 lakh shares of the firm changed hands amounting to a turnover of Rs 32.31 crore on BSE.

In terms of technicals, the relative strength index (RSI) of Vodafone Idea stands at 76.3, signaling it's trading in the overbought zone. Vodafone Idea stock has a one-year beta of 0.7, indicating very low volatility during the period. Vodafone Idea shares are trading higher than the 5 day, 10 day, 20 day , 50 day, 100 day, 150 day and 200 day moving averages.

Also read: Vodafone Idea shares hit fresh one-year high, stock up 39% in two sessions; key tech levels to watch

The stock hit a 52 week low of Rs 5.70 on March 31, 2023 and a 52 week high of Rs 18.42 on January 1, 2024.

In the second quarter of the current fiscal, the firm’s net loss widened to Rs 8,738 crore for the quarter ending September 30, 2023 as against Rs 7,596-crore net loss in the year-ago period.

The telco said its average revenue per user (ARPU) rose to Rs 142 in Q2FY24 as against Rs 139 in Q1FY24 and Rs 131 in Q2FY23. Its revenue was flat at Rs 10,716 crore in Q2FY24 as compared to Rs 10,615 crore in the year-ago period.

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