Aviation stocks soar on bourses

Aviation stocks edged higher today - led by Jet Airways which gained over 3 per cent - following RBI extending the period for overseas borrowings for airlines to next March and the Competition Appellate Tribunal dismissing a plea against the Jet-Etihad deal.
The Reserve Bank had yesterday extended the deadline for the aviation sector to raise funds through external commercial borrowings till March 2015, a move that provided relief to the sector facing cash-crunch.
As per the earlier guidelines, the scheme was initially valid till December 31, 2013.
That apart, the Competition Appellate Tribunal today dismissed the appeal challenging fair trade watchdog CCI's approval for the Rs 2,060 crore Jet-Etihad deal,

Reacting to the developments, shares of Jet Airways, jumped 7.04 per cent to touch an intra-day high of Rs 237.85 on the BSE.
At the end of the trading session the stock was quoted at Rs 228.85, up 3.09 per cent from its previous closing price.

Similar movement was seen on the SpiceJet counter, where the stock opened on a bullish note at Rs 13.32, then gained further ground and touched an intra-day high of Rs 14.05 on the BSE.
Market analysts said the jump was largely a reaction to the RBI move of extending the ECB borrowing window. Moreover, Jet Airways counter also gathered momentum after the favourable decision from the Compat.

Compat dismissed Former Air India Executive Director Jitendra Bhargava's plea against Jet-Etihad deal.
Bhargava had filed the appeal questioning the decision of CCI to approve the Jet-Etihad deal without carrying out a detailed assessment.
The tribunal's ruling would come as a relief for Jet and Etihad as the deal has run into various regulatory hurdles.