Kingfisher Airlines zooms over 7% on BSE

Kingfisher Airlines today soared over 7 per cent on the Bombay Stock Exchange after its Chairman Vijay Mallya said the airline does not have any overdues towards the oil marketing companies.

Bolstered by the statement, shares of Kingfisher Airlines jumped 7.74 per cent to an intra-day high of Rs 68.20 on BSE. The scrip finished at Rs 67.85, up 7.19 per cent from previous close.

"Aviation sector is riding on the back of growth in the volume segment. The traffic is going up each day boosting the margins of the airlines. Particularly, Kingfisher shot-up after Mallya's statement that the company is not burdened by any dues to the oil marketing companies," CNI Research CMD Kishore P Ostwal said.

Mallya today said on the sidelines of the IATA conference that the company does not have any current dues to the oil marketing companies.

On the National Stock Exchange, the shares closed at Rs 67.15, reflecting a gain of 5.25 per cent from previous close.

The rise in the stock was also significant as the broader barometer Sensex was sluggish for the second consecutive day and settled 80.71 points lower at 19,861.01.

Besides, international aviation body IATA today said India's insular approach to FDI in aviation is going to hurt the sector, which needs an investment of $140 billion in the next 20 years.

Shares of Jet Airways and low-cost carrier Spicejet too ended the day on a strong note. Jet Airways settled with a gain of 3.24 per cent at Rs 818, while Spicejet finished at Rs 76.25, up 0.99 per cent on BSE.