Jet Airways rallied 150 per cent in intra-day deals on Thursday on the National Stock Exchange (NSE) with the stock hitting a high of Rs 82.75. It, however, trimmed gains to settle at Rs 73.55, up still a massive 122 per cent.
On the BSE, the scrip hit a high of Rs 77.35. The counter, however, ended the day 93 per cent higher at Rs 64 levels. In comparison, the S&P BSE Sensex gained 1.25 per cent, or 489 points to end at 39,602 levels, while the NSE’s Nifty50 closed 1.2 per cent up at 11,832 levels.
A Dutch district court-appointed administrator Rocco Mulder through lawyers moved the National Company Law Tribunal (NCLT) on Wednesday to file an intervention application in the insolvency matter of Jet Airways filed by State Bank of India (SBI) on June 19.
However, the tribunal did not allow it and asked them to argue the matter on June 20. The engineers’ and pilots’ associations also moved the tribunal seeking to be made parties to the ongoing insolvency matter. READ ABOUT IT HERE
That event apart, analysts attribute the sharp rally to the counter moving out of the futures & options (F&O) segment upon the expiry of contracts on June 27 and triggering a short-covering on Thursday. Nearly 121.29-lakh shares had been traded on the BSE till close of trade on Thursday, as compared to an average 23.92-lakh shares traded on the BSE in the past two weeks, exchange data show.
“Jet Airways has been in news over the past few months and is among the top losers in the BSE 500 pack on a year-to-date basis. The sharp rally on Thursday could be due to the stocks moving out of the F&O segment next week when the trades have to be either rolled over or squared. It could have triggered a short-covering in the counter on Thursday,” said A K Prabhakar, head of research at IDBI Capital.
Thus far in calendar year 2019 (CY19), Jet Airways has been the second-worst performer among the stocks that comprise the BSE 500 index, falling around 88 per cent till June 19 to Rs 33 levels, ACE equity data show. Only Anil Ambani-owned Reliance Communications (RCom) has performed worst and slipped nearly 91 per cent during this period.
Meanwhile, State Bank of India (SBI) - led lenders’ consortium had moved NCLT to initiate insolvency proceedings against the airline. The lenders, post a meeting held on Monday, decided to move the tribunal after none of the offers from the potential bidders could materialise. There were hopes that Mumbai-based Hinduja Group could team up with Abu Dhabi-based Etihad Airlines to collectively take up stake in the airline. READ ABOUT IT HERE