Vodafone Idea shares jumped 18% today to Rs 4.98 apiece on BSE. Vodafone Idea share prices surged 48 per cent intraday in the previous session on the reports that the government is unlikely to invoke the firm’s bank guarantees.
Vodafone Idea share price continued to surge today, building on yesterday’s stellar 40% gain, ahead of Rs 1,000 crore payment to clear part of the estimated Rs 53,000 crore government dues on Friday. Vodafone Idea shares jumped 18% today to Rs 4.98 apiece on BSE. Despite the rally in Vodafone Idea share price, analysts suggest investors to avoid any fresh investment in the stock. Investors already holding Vodafone Idea shares are advised to exit at share price jumps.
“From the investors’ point of view, they should use all the up moves that the stock price shows to exit their investments. There are a lot of uncertainties surrounding this and this makes investments in such stocks at any price with a highly risky proposition. So, existing investors should use up moves to exit until stability on the policy front is seen. So far as fresh buying is concerned in this stock, that should be squarely avoided,” Technical analyst Milan Vaishnav, CMT, MSTA, told Financial Express Online yesterday.
- Nifty trades above 10,500 for the first time since June 24; check what’s moving markets higher today
- Share Market HIGHLIGHTS: Sensex jumps 430 pts, Nifty ends at 10,552 as auto stocks rally; M&M surges over 6%
- Sensex, Nifty snap two-day losing streak as financials gain; check what pushed markets higher today
Vodafone Idea share prices surged 48 per cent intraday in the previous session on the reports that the government is unlikely to invoke the firm’s bank guarantees. However, Kumar Mangalam Birla, chairman of Vodafone Idea, along with Bharti Group chairman Sunil Bharti Mittal, met finance minister Nirmala Sitharaman on Wednesday. Neither of them revealed specifically what was discussed in the meeting. In order to explore the options to keep Vodafone Idea afloat, K M Birla met DoT secretary Anshu Prakash on Tuesday.
Around 11.15 AM, Vodafone Idea shares were trading 10.26 per cent higher at Rs 4.62 apiece on BSE. Analysts are of the view to wait for some clarity on the AGR issue. “Only short term trading could be done and investment should be avoided as of now,” Narendra Solanki, Head Fundamental Research (Investment Services) — AVP Equity Research, Anand Rathi Shares & Stock Brokers, told Financial Express Online.