Vodafone Idea share price soars 28 pct after report says Google eyeing stake buy

Vodafone Idea share price: After the news broke of Google eyeing a 5 per cent stake buy in Vodafone Idea, the Indian telecom sector and the stock market is abuzz with speculation.

Its immediate impact has been spectacular - Vodafone Idea share price has skyrocketed over 28 per cent in the intraday trade. Photo: Reuters

Vodafone Idea share price: After the news broke of Google eyeing a 5 per cent stake buy in Vodafone Idea, the Indian telecom sector and the stock market is abuzz with speculation. Its immediate impact has been spectacular - Vodafone Idea share price has skyrocketed over 28 per cent in the intraday trade. According to the stock market experts, a possible Vodafone stake sale to Google augurs well for both the company and its stock. There are limited companies in the Indian telecom sector and after an investment happens in a company of big repute, there can be investments in others.

Sumeet Bagadia, Executive Director at Choice Broking said, "A deal between both will augur well for Vodafone Idea and for the Indian telecom industry. There are limited players in Indian telecom industry like Bharti Airtel, Reliance, Vodafone Idea, BSNL and MTNL. So, a big company like Google investing in an Indian telecom company may trigger further investments in other telecom companies, which is a good development for the telecom sector post-Coronavirus lockdown." He said that the deal would definitely help Vodafone Idea to consolidate its balance sheet and fundamentals.

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Aamar Deo Singh, Head Advisory, Angel Broking said, “Amidst reports of Google picking up 5 per cent stake in Vodafone Idea, it appears that the Indian telecom and online space are set to witness a surge in activity, which is always welcome. It would offer consumers a better deal and competition in this space is definitely required as the digital space has gained massive importance post COVID-19 and is set to witness multi-fold growth in coming years.”

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