Vodafone Idea share price is soaring! Experts reveal reasons why

Vodafone Idea share price in the last one month's trading sessions has surged from Rs 4.6 per to Rs 10.60. In fact, in this period, the share made a high of Rs 12 as well.

Asked about the reasons for the rise, stock market experts said that telecom companies are expecting relief from the Supreme Court in telecom AGR dues payments. Photo: Reuters

Vodafone Idea share price in the last one month's trading sessions has surged from Rs 4.6 per to Rs 10.60. In fact, in this period, the share made a high of Rs 12 as well. Asked about the reasons for the rise, stock market experts said that telecom companies are expecting relief from the Supreme Court in telecom AGR dues payments. They also said that due to the lockdown, telecom business, especially broadband and data business, has grown exponentially and post-lockdown Indian digital horizon is expected to grow further.

Speaking on the relief in telecom AGR dues that is fueling the Vodafone Idea shares, Prakash Pandey, MD & CEO at Plutus Advisors said, "Telecom companies are expecting relief from the Supreme Court in their AGR dues payments." He said that Vodafone Idea is a small-cap stock and people have taken a bet by putting money in it. However, he said that it's very risky. Pandey suggested Vodafone Idea stock investors to maintain the stop loss below Rs 8 to remain safe in case the Supreme Court rules against the telecom companies.

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Linking Vodafone Idea share price rise with the opening of new digital horizon post-lockdown, Sumeet Bagadia, Executive Director at Choice Broking said, "This rise in Vodafone idea share price is because of the recovery hopes getting into the Indian markets. During lockdown, digital domain has got a larger canvass and in coming times demand for more data and bandwidth is expected to fuel telecom business. Since, there are limited players in Indian telecom industry, Vodafone is expected to get benefit of this new development and hence people are putting money in this stock."

Bagadia also suggested to Vodafone Idea stock investors that it is expected to become highly volatile.

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