Vodafone Idea’s (Vi) stock has seen a strong opening on Tuesday. The news around banks urging the government to ease the pressure on the telco has worked its way. At the time of writing, Vi’s stock is at Rs 8.20 which is 3.14% in the green. The stock had closed at Rs 7.95 yesterday and opened at the same price. It also touched a high of Rs 8.30 in the morning session. Bharti Airtel however is in the red today morning after touching a lifetime high mark yesterday. So what’s caused this surge in the stock price of Vodafone Idea?
Vodafone Idea Stock Price Surged Because of This
A stock can move up and down because of multiple reasons. Sometimes it is a new policy coming into effect or an announcement from the company or more. Right now, the only thing that’s evidently moving the stock price up is the reports of banks urging the government to ease the pressure on Vodafone Idea.
Apart from this, there has been no announcement from the company nor is there any other form of good news that has arrived for the sector. One more reason that Vi could be in the green today is its high volatility. Whenever a stock is highly volatile, it attracts a lot of intra-day traders. A highly volatile stock falls very fast and gains very fast. Using this to their advantage, short-term traders purchase the dip and sell in the high.
Note that this is just speculation on my end and this might not be the reason after all. But it is something worth considering. Reliance Industries Limited (RIL), the parent company of Reliance Jio, is in the green as well. At the time of the writing, RIL is trading 0.38% in the green at Rs 2,380.
It will be interesting to follow Vi’s stock in the coming days because there are a lot of announcements that are going to come related to 5G, relief package, AGR dues, and more.