Revealed! Why Vodafone Idea share price is skyrocketing
Telco Vodafone Idea has been facing a real hard time from the competition and its stock was reflecting that pummeling. However, all of a sudden, things have changed.
Telco Vodafone Idea has been facing a real hard time from the competition and its stock was reflecting that pummeling. However, all of a sudden, things have changed. Vodafone Idea share price has suddenly skyrocketed to the tune of near 10 per cent after hitting its intraday high of Rs 8.60 per share levels. Such a rise in the low priced mid-cap stock was unexpected as it had made a close of Rs 7.70 per stocks yesterday.
According to stock market experts, stock market is gaining momentum as global sentiments are positive and global economy is also opening up giving hope of faster recovery. In such a scenario, after banking and financial sector, telecom is the major sector where people are expected to pump money for fast and higher returns. Since, Vodafone Idea is a mid-cap stock, people are ready to take risk in the stock as its fundamentals are still strong. They said that post lockdown, digital domain is expected to gain more ground and it would fuel data and band width business of the telecom companies where Vodafone Idea is expected to get benefit of this new trend.
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Speaking on the reasons for rise in Vodafone Idea share price, 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 the heavy sell off, banking, finance, telecom and auto stocks were the major losers and hence during recovery, these stocks are expected to gain their lost ground at the faster rate. During lockdown, digital domain has got a larger canvass and in coming times demand for more data and band width 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."
Giving his reasons for rise in Vodafone Idea share price, Avinash Gorakshakar, a SEBI registered equity analyst said, "Vodafone Idea is a low-priced stock and telecom sector stocks are expected to gain maximum after banking and NBFC stocks. Since, digital horizon is going to have a larger canvas post-lockdown, telecom industry which has limited players in India is expected to get good amount of business through data and bandwidth. Since, Vodafone Idea has its consumer base and its fundamentals are still strong, people with limited resources for investment might move towards Vodafone Idea shares."
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