This sustained rise in mutual fund holdings contrasts with foreign institutional investors (FIIs), who marginally reduced their stake to 5.56% in the March quarter from just over 5.99% in the preceding quarters, where it had largely remained stable.
Promoters, too, have marginally raised their stake, increasing their holding from 25.57% to 25.64% during the same period, further reinforcing internal confidence in the company’s outlook.
However, the bullish positioning comes against a backdrop of weak stock performance. Shares of Vodafone Idea declined nearly 15% over the last three months, making it a notable underperformer in the telecom space.
From a technical perspective, indicators present a mixed picture. The stock’s Relative Strength Index (RSI) stands at 47.8—hovering in neutral territory, with levels below 30 considered oversold and above 70 overbought. Additionally, the stock is currently trading below four key moving averages—the 30-day, 50-day, 100-day, and 150-day SMAs—though it continues to hold above its long-term 200-day average.
Despite these signals, analyst sentiment remains cautiously optimistic. According to Trendlyne data, 21 analysts have a consensus “Hold” rating on the stock, with an average target price indicating a potential upside of around 5.5% from current levels.
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Fundamentally, the company has yet to announce its March 2026 quarterly results. In the December 2025 quarter, Vodafone Idea reported consolidated revenue of Rs 11,516 crore, reflecting a modest 1.3% year-on-year growth. However, profitability remains elusive, with the company posting a net loss of Rs 5,286 crore during the same period.
As mutual funds continue to build their positions, the coming quarters will be crucial in determining whether this institutional bet translates into a sustained turnaround story.
(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)