Vodafone Idea share gained over 28% today after the Union Cabinet cleared a relief package for the telecom sector. Vodafone Idea stock touched an intraday high of Rs 11.47, rising 28.44% on BSE.
The stock opened with a gain of 9.97% at Rs 9.82 against previous close of Rs 8.93 on BSE.
The share has gained 41.08% in the last 3 days.
Vodafone Idea stock is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. The stock has gained 4.51% since the beginning of this year but lost 3.47% in one year.
In a month, the share has gained 86.26%. Market cap of the firm rose to Rs 32,499 crore on BSE.
Total 4,113 shares changed hands amounting to turnover of Rs 437.93 crore on BSE.
Share of another key telco Bharti Airtel hit all-time high of Rs 743.9, rising 2.53% against previous close of Rs 725.55.
Airtel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The share has gained 50.25% in one year and risen 42.1% since the beginning of this year. Market cap of the telco stood at Rs 3.97 lakh crore on BSE.
Total 34.23 lakh shares changed hands amounting to turnover of Rs 249.28 crore on BSE.
The government has proposed a four-year moratorium on adjusted gross revenue (AGR) related dues besides allowing telecom firms to surrender unused spectrum. The move will primarily provide relief to Vodafone Idea, which is on the brink of going bankrupt.
A moratorium on AGR-related dues will enable the cash-strapped telco to improve its business and clear dues over a longer period.
The relief package will benefit both Vodafone Idea and Bharti Airtel as the telcos have to repay the biggest chunk of AGR dues.
While Bharti Airtel’s financial position is much better than Vodafone Idea, the relief measure will help the company’s future plans to compete with Reliance Jio.