Vodafone Idea rallies for fourth consecutive session

Shares of Vodafone Idea remained in heavy demand on Wednesday closing with up to 17.4 per cent gains after the company announced a hike in mobile phone call and data charges from December.

Rising for the fourth consecutive session, Vodafone Idea shares advanced 17.44 per cent to close at Rs 7.07 on the BSE. During the day, it jumped 31.72 per cent to Rs 7.93. In four sessions, the stock price has more than doubled.

However, Bharti Airtel, which rose 3.11 per cent to its 52-week high of Rs 452.95 during the day, later erased its early gains and ended at Rs 437.25, down 0.46 per cent as compared with the previous close.

Faced with intense competition and unprecedented statutory dues, Bharti Airtel and Vodafone Idea on Monday announced a rise in mobile phone call and data charges from December saying the increase was warranted for viability of their business.

"To ensure that its customers continue to enjoy world-class digital experiences, Vodafone Idea will suitably increase the prices of its tariffs effective December 1, 2019," Vodafone Idea had said.

The telecom sector is capital-intensive with fast-changing technology cycles that require continuing investments, Bharti Airtel said.

"It is, therefore, extremely important that the industry remains viable to support the vision of Digital India. Accordingly, Airtel will appropriately increase price offerings in the month beginning December," it added.