Airlines gain on foreign investment hopes

Shares in Indian airlines jumped on expectations the government will soon allow foreign carriers to invest in local airlines, providing a lifeline to cash-starved and debt-laden carriers such as Kingfisher Airlines.

Foreign airlines are barred from investing in domestic ones, though overseas investors are allowed to hold a cumulative 49%.

Jet Airways rose more than 4%, while SpiceJet gained 4%.

Kingfisher was up 6.5%, continuing a period intense volatility in recent sessions as the carrier has been the subject of various takeover rumours, none of which has been officially confirmed.