Cairn soars 26% on LSE, ‘positive’ for Voda Idea

Mumbai: The government’s decision to repeal a disputed tax law that had led to several court cases around the world could be a big positive for the debt-laden Vodafone Idea, say analysts. They feel with an amicable closure of the tax dispute between the UK-based Vodafone Group and the Indian government, the foreign partner in Vodafone Idea, may look at investing in the domestic telecom services provider.

The move, meanwhile, had a positive impact on the

Energy stock which was trading 26% higher on the London Stock Exchange (LSE). Vodafone Group stock was up only 0.5%. The UK’s Cairn Energy too had taken the government to various arbitration panels and won.

Although the announcement relating to introduction of a bill to amend the tax rule came after the market closed on Thursday, the Vodafone Idea stock price witnessed a good recovery after touching a year-low level early in the session. Within the first hour of opening, the stock lost nearly 25% to Rs 4.6 on the BSE, but closed at Rs 5.9, down just 1.5%.

In the broader market, the sensex opened flat and rallied to an all-time high at 54,577 points but late selling pulled it down to close at 54,493 points, up 123 points. The flat closing came on the back of a Rs 720-crore net outflow by foreign funds, data on BSE showed.