Vodafone Idea (Vi), Bharti Airtel, and Reliance Industries Limited (RIL) stocks went down yesterday at the closing time despite performing well in the morning session. But on Thursday, at the time of writing, both the stocks are trading in the green. Vodafone Idea’s current stock price is Rs 8.15, which is 1.24% high, while Bharti Airtel is trading at Rs 675, which is 1.07% in the green. It is worth noting that both the indexes, including NIFTY and SENSEX, are in the red. Thus, watching telecom stocks do well is a positive for the sector.
Why Are Vodafone Idea, Airtel Stocks Going Up?
Frankly, it is hard to say at the moment. There haven’t been any major announcements in the favour of the telcos, and neither have the telcos indicated they are about to do something. The general expectation from the telecom stocks for Thursday was negative because of what happened on Wednesday.
For the unaware, on Wednesday, the cabinet refused to hear the proposal from the Department of Telecommunications (DoT), which meant the telecom sector wasn’t going to get its relief package announced after all.
This led to investors worrying and pulling their money out of the telcos. It was particularly a major blow for Vodafone Idea, which anticipated an immediate relief from dues payments. Had the cabinet heard the proposal from the DoT, the stock price of the telcos might have gone even further up!
The reason behind the refusal to hear DoT’s proposal is not clear. Over the long-term, Bharti Airtel and Vodafone Idea’s stocks can do much better if the government can introduce the relief package as soon as possible. The more time it will take for the government to come out with the relief package, the more it is going to hurt Vodafone Idea.
Further, Vi might be able to get some new investors on board if it can get the relief measures from the government.