Vodafone Idea corrects over 11% in two days

Vodafone Idea tanked 5.88% to Rs 6.88, extending losses for the second straight day.

Shares of Vodafone Idea fell 11.11% in two trading sessions to its current market price of Rs 6.88 from its recent closing high of Rs 7.74 on Wednesday, 4 December 2019.

The stock fell 5.56% to Rs 7.31 on Thursday after credit rating agency Brickwork Rating downgraded its rating on Vodafone Idea's on non-convertible debentures (NCDs) to BWR BBB- from BWR A- (rating watch with negative implications).

The downgrade is on account of considerable impact of the adjusted gross revenue (AGR) related liability on the financial performance of the company resulting in huge losses, erosion of net worth and deterioration in the overall risk profile of the company. The announcement was made during trading hours on 5 December 2019.

Meanwhile, the S&P BSE Sensex was down 131 points or 0.32% to 40,648.96.

On the technical front, the stock's RSI (relative strength index) stood at 55.683. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 5.46, but below its 200 DMA placed at Rs 10.92.

On consolidated basis, Vodafone Idea reported a net loss of Rs 50,921.90 crore in Q2 September 2019 as against a net loss of Rs 4,973 crore in Q2 September 2018. The net sales grew 41.8% to Rs 10,840.20 crore in Q2 September 2019 over Q2 September 2018.

Vodafone Idea's offerings include consumer and enterprise. Its consumer offerings include prepaid unlimited propositions, red/nirvana postpaid plans, unlimited international roaming products and others.

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