Vodafone Idea witnessed a 6 per cent plunge in its shares as the Indian telecom giant refuted speculations of engaging in talks with Elon Musk's Starlink. The denial from Vodafone Idea comes after recent surges in its stock. This surge was prompted by reports suggesting a potential collaboration between the telecom operator and Musk's satellite internet unit.

On Tuesday, January 2, Vodafone Idea shares dipped 6.17 per cent to hit an intraday low of Rs 15.95 apiece.

In response to the speculation, Vodafone Idea clarified that it is not currently in discussions with Starlink and is unaware of the basis for the market rumours. 

Vodafone Idea's stock surged over the past two sessions, following media reports suggesting Elon Musk's interest in acquiring a stake in the company. The Bombay Stock Exchange sought clarification from Vodafone Idea on Monday in response to media reports.

"We would like to submit that the company is not in any such discussion with the named party. We are not aware of the basis of the said news item," stated Vodafone Idea in its response to the exchange.

The rumour, taken up by multiple news outlets on Friday, triggered a 21 per cent surge in Vodafone Idea's stock, followed by an additional 6 per cent jump on Monday. The trading volume during these sessions reached approximately 1.7 billion shares, marking the highest in almost two years.

Vodafone Idea's stock experienced a downturn after the company's clarification on Tuesday afternoon, with a nearly 5 per cent decline and almost 1 billion shares changing hands.

Vodafone, headquartered in the UK, has previously partnered with Amazon.com's Kuiper for internet networks in Europe and Africa. However, Kuiper does not operate in India. The denial of talks with Starlink underscores the competitive dynamics in the Indian telecom sector, where Bharti Airtel and Reliance's Jio dominate, while Vodafone Idea grapples with subscriber losses and financial challenges