Just when Vodafone Idea (Vi) stock seems to be gaining momentum, a news report comes in and tanks that flow. The telco’s stock closed at Rs 5.95 on Friday, the last day of the week. It had previously closed at Rs 6.45 and opened at Rs 5.95 today morning. Vi’s stock touched a high of Rs 6.40 and a low of Rs 5.90 on the trading day. There’s a solid reason why this stock is down right now. It is multiple false reports that were making rounds yesterday morning.
Vodafone Idea LF Fiasco Had a Negative Impact on the Stock
Yesterday morning, certain reports were circulating online that said Vodafone Idea (Vi) had failed to pay the license fee (LF) dues for the first quarter of FY22. This portrayed the telco in a negative light for the entire day until a spokesperson from the company clarified that the LF dues have already been paid.
Until Vi’s spokesperson could say anything, the damage had already been done. A ton of users had no clue about Vi’s spokesperson’s comments. This might have led to them pulling their money out of stock.
Thus today, on Friday, Vi’s stock has closed 7.75% lower. Until and unless a major relief package from the government comes, it is hard for the telco’s stock to reach the Rs 10 price point yet again. A lot of the company’s investors (both retail and institutional) might have lost faith, given the stance of the promoters in the matter. The promoters don’t want to infuse any more capital into the company, which signals that they have lost their confidence in the telco’s future.
Regardless, Vi’s stock has been an attractive sight for traders as it has been quite volatile for the past few weeks, given all that’s happening in the industry. It will be interesting to see whether the stock will open even lower or higher on the next market day.