Shares of airline companies have seen huge trading activities on the bourses ahead of Cabinet Committee on Economic Affairs (CCEA) meeting today to consider the proposal of foreign direct investment (FDI) into the sector.
Jet Airways, SpiceJet and Kingfisher Airlines are trading higher by more than 4% each on back of heavy volumes on the Bombay Stock Exchange.
“The government is expected to take a decision on Friday on the issue of allowing foreign airlines to buy up to 49% stake in cash-starved Indian carriers,” the PTI report suggests.
At present, India allows foreign investors, not related to airline business, to buy up to 49% stake in domestic airlines, but foreign carriers are not permitted to invest in them, added report.
Kingfisher Airlines has jumped up to 14% at Rs 11.40 after opening at Rs 10.47 on the BSE. A combined 36.3 million shares have already changed hands on the counter till early noon deals against an average around 22 million shares which were traded daily in past two weeks.
SpiceJet has surged 8% at Rs 35.80, it has seen almost two-fold jump in the trading volumes. As many as 7.7 million shares have changed hands on the counter so far on the BSE compared to an average 4.2 million shares traded daily in past ten days. Jet Airways too, rallied 5% at Rs 379 on the BSE.