Vodafone Idea breaks 6-day losing streak

Vodafone Idea rose 2.34% to Rs 3.94 on bargain hunting after a recent steep plunge.

The stock slumped 39.74% in the past six trading sessions to settle at Rs 3.85 yesterday, 29 October 2019, from its close of Rs 6.39 on 18 October 2019.

Shares of Vodafone Idea crashed recently following the adverse Supreme Court (SC) verdict last week allowing the Centre to recover Rs 92,641 crore in total adjusted gross revenue (AGR) from telecom operators in India.

SC has reportedly instructed telecom companies to deposit the dues sought by the government in three months. Vodafone Idea and Bharti Airtel are affected the most by the SC order with pending licence fee and spectrum usage charge (SUC) dues of Rs 39,000 crore and over Rs 41,000 crore, respectively.

Media reports, however, suggested that Cabinet Secretary Rajiv Gauba headed Committee of Secretaries will review the financial stress on the telecom sector and examine all aspects and suggest measures to mitigate the same following the SC ruling on the AGR issue. A reference is being made to the telecom regulator to make viable pricing for voice and data tariff so as to curb further revenue erosion of the incumbents, the reports added.

Meanwhile, the S&P BSE Sensex was up 265 points or 0.67% to 40,096.85.

On the BSE, 317.66 lakh shares were traded in the counter so far compared with average daily volumes of 282.84 lakh shares in the past two weeks. The stock hit an intraday high of Rs 4.18 and an intraday low of Rs 3.90 so far during the day.

The stock hit a 52-week high of Rs 27.51 on 21 November 2018. The stock hit a 52-week low of Rs 3.66 on 25 October 2019.

On a consolidated basis, Vodafone Idea reported a net loss of Rs 4,067.01 crore in Q1 June 2019 compared with a net loss of Rs 2,757.60 crore in Q1 June 2018. Net sales surged 92% to Rs 11,264.70 crore in Q1 June 2019 over Q1 June 2018.

Vodafone Idea, formerly Idea Cellular, is a telecom service provider whose offerings include consumer and enterprise.

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