Press Trust of India / Mumbai Sep 01, 2010, 17:53 IST
Shares of airline companies rose as much as 5 per cent on the BSE, a day after state-owned oil firms reduced the Aviation Turbine Fuel (ATF) prices by 4 per cent led by the private air carrier Kingfisher Airlines.
Yesterday, the state-owned oil firms had cut jet fuel, or ATF, prices by 4 per cent, for the first time since July, on softening of international oil prices.
The maximum gain was witnessed by Kingfisher Airlines shares, which were also powered by the company's fund raising plan. The scrip climbed 5.14 per cent to settle at Rs 62.40 on the Bombay Stock Exchange.
The airline yesterday said it will raise up to Rs 5,000 crore through various instruments, including preferential issue and Global Depository Receipts (GDRs).
Marketmen said the scrip surged on the airline's move to raise funds as a part of its financial restructuring plan. Besides, the rise in the stock was also fuelled by the reduction in ATF prices.
The other two aviations counters also opened the day on a firm note and ended in a positive terrain. Jet Airways witnessed a gain of 0.51 per cent to settle at Rs 722.35, while low-cost carrier Spicejet finished the day at Rs 74, up 3.35 per cent from the previous close.
"The airline stocks rose on the back of positive investor sentiment after reduction in ATF prices," said an analyst.
Meanwhile, the broader gauge sensex was also firm throughout the day and ended 1.31 per cent higher at 18,205.87.
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Shares of airline companies rose as much as 5 per cent on the BSE, a day after state-owned oil firms reduced the Aviation Turbine Fuel (ATF) prices by 4 per cent led by the private air carrier Kingfisher Airlines.
