SpiceJet extends gain for 2nd day after Delhi govt cuts tax on ATF

The stock rallied 6% to Rs 82.20 in intra-day trade, extending its previous day's 3% gain on BSE,

SpiceJet has rallied 6% to Rs 82.20 in intra-day trade, extending its previous day’s 3% gain on BSE, on the back of heavy volumes after the Delhi government on Wednesday said VAT on Aviation Turbine Fuel (ATF) will be brought down from 25% to 1% for flights to remote areas such as North Eastern states.CLICK HERE TO READ FULL REPORT.

SpiceJet operates 343 average daily flights to 45 destinations, including 39 domestic and 6 international ones. The majority of the airline’s fleet offers SpiceMax, the most spacious economy class seating in India, as an additional fee option.

Meanwhile, in past three weeks, the stock outperformed the market by surging 35% from Rs 61 on February 16, as compared to 2% rise in the S&P BSE Sensex. It trading close to its 52-week high of Rs 85.60 touched on May 19 last year during intra-day trade.

At 10:29 am; the stock was up 4.3% at Rs 80.75 against 0.09% decline in the benchmark index. Around 10.77 million equity shares representing 1.8% of total equity of SpiceJet changed hands on BSE so far.

However, Jet Airways (up 0.64% at Rs 453) and InterGlobe Aviation (0.09% at Rs 881) were trading flat after gaining in the range of 2%-3% on Wednesday.