Aviation shares rallies on FDI hopes
Jet Airways, Kingfisher Airlines, SpiceJet has soared more than 6% each on the BSE
Shares of aviation companies have soared more than 6% on back of huge volumes after civil Aviation Minster Ajit Singh in an interview with the newspaper said that foreign direct investment (FDI) in sector will be revised soon.
Currently, foreign airlines are not allowed to pick up equity in aviation companies while foreign investors and financial institutions can hold up to a 49% stake.
Meanwhile, a meeting to be chaired by Prime Minister Manmohan Singh scheduled for today is expected to finalise an Airline Hub Policy which would focus on making India an aviation hub by expanding both regional and international air connectivity, a report suggests.
Among the individual stocks, Kingfisher Airlines has zoomed almost 20% to Rs 12.70 followed by SpiceJet (up 8% to Rs 32.25) andJet Airways (India) (up 6.4% to Rs 337.60) on the Bombay Stock Exchange.