It is the last day of 2021, and Vodafone Idea (listed as IDEA on the stock exchanges) shares have gained almost 5%. It’s not just the last day of 2021 but also the last day of the week, Friday. At the time of writing, Vodafone Idea’s shares are trading at Rs 14.70, which is 5% in the green. The telco’s shares have already hit a high of Rs 14.85 on Friday morning.
If you are wondering why is the telco’s stock riding the green wave right now, the answer would be too uncertain. Multiple factors such as the government relief package, prepaid tariff hikes, and the expected fundraising along with the relief measures 2.0 as well as another round of tariff hikes in 2022 could change the investor sentiment towards the company in a positive manner.
Other Telecom Stocks Also in the Green
Even Bharti Airtel (listed as BHARTIARTL) and Reliance Industries Limited (listed as RELIANCE) are trading in the green right now. At the time of writing, Airtel shares are trading at 686.75, which is 1.09% in the green, and RIL shares are trading at Rs 2365, which is 0.25% in the green.
The entire market sentiment looks positive as both NIFTY and SENSEX have gained 0.92% and 0.82% on Friday morning. Even after all help to the telcos with the moratorium on payments of statutory dues, the government was able to reach its budgetary revenues from the telecom sector. This was aided by the one time gain that was provided by Jio and Airtel. Both the top telcos of the country had pre-paid deferred dues pertaining to the previous spectrum auctions to the government.
The shares of Vodafone Idea have gained a lot in the last few months. From the point of trading under Rs 5 to reaching where it is today, Vodafone Idea investors have had a wild ride. 2022 will be a crucial year for the telco as it will oversee fundraising, 5G rollout, and more.
