The share price of Vodafone Idea has seen tremendous improvement, it has gone up by almost 70% post the news that global tech giant Google is in talks for buying a 5% stake.
Today the share price went up by 20% to ₹ 12.62 per share on BSE, the share price has gone up by 116% from ₹ 5.83 to ₹ 12.62 in just 7 trading sessions. According to the data provided by BSE, with a market capitalization of ₹ 30229.63 crores, Vodafone Idea has climbed up to 91st position from 100th last week in the overall m-cap ranking. Based on the data of the past one month, Vodafone Idea share price has vaulted over 200 percent from ₹ 4.17 to today’s intraday high. Analysts have advised investors to proceed with caution while investing in the stock.
Vodafone Idea on May 29, said that as part of corporate strategy, the company is constantly evaluating various opportunities for enhancing the stakeholder’s value so as to provide them with better returns. This quick rise in the share value is attracting many investors to invest with Vodafone Idea as they are expecting further growth in the share price. After hearing the news that Google is interested in buying shares of Vodafone Idea the investors have much more confidence to buy new shares. The investors believe that after Google invests in Vodafone Idea their share price will further go up, therefore to get better benefits from this the investors are in a hurry to buy shares before a further rise in the share price.
Amit Gupta, Cofounder Trading bells, told Financial Express Online that Vodafone Idea has gained over 100% in the last 10 trading sessions and it is a good time to book profits in this stock now. He also added that the stock has become overheated and we can expect some consolidation coming on the back of profit booking in the coming days, as Reliance Jio continues to attract investor interest within the telecom sector.
Aamar Deo Singh, Head Advisory at Angel Broking told Financial Express Online that the stock seems to all of a sudden, have become most sought after by investors but post such superlative price performance, the fresh entry should be viewed with caution. He also added that technically, the stock has resistance around the 13-15 zone, where profit booking could be witnessed.