Bharti Airtel and Vodafone Idea stocks are doing very well on Tuesday morning. After a nightmare Monday for the stock market due to weak global performance, Airtel and Vodafone Idea investors would be slightly relieved on the Tuesday morning. Both the telco stocks are running more than 3% in the green.
On Tuesday, after opening at Rs 684, Bharti Airtel’s stock is trading at Rs 711.10 at the time of writing. On Monday, Airtel’s stock had closed at Rs 689.90, thus the opening on Tuesday wasn’t strong. But the recent announcements made by the telco for the board meeting to discuss raising funds via preferential share issue has got the market excited and surprised. This is because just in the previous quarter, Airtel had raised Rs 21,000 crore via a rights issue. Airtel’s stock touched a high of Rs 717.75 in the early trading session on Tuesday.
Vodafone Idea Stock Performing Strong on Tuesday
Vodafone Idea’s stock had closed at a very poor figure at Rs 10.95 on Monday. Further, it had opened at a low of Rs 10.80 on Tuesday. But at the time of writing, the stock is trading at Rs 11.40 which is 4.11% in the green. Vi’s stock has already touched a high of Rs 11.50 on Tuesday morning.
The reason why Vodafone Idea’s stock is zooming up is the announcement from the telco regarding the possible tariff hikes. Ravinder Takkar, CEO, Vodafone Idea said in the earnings call of the telco that the company will estimate the market and go ahead with another round of prepaid tariff hikes either in 2022 or 2023.
This will help the telco in earning more money out of each of its 4G customers which will aid in improving the average revenue per user (ARPU) figure. Further, it will also help the telco in improving its revenues which is what the analysts also want.