Airlines stocks zoom 6 pc on FDI proposal | india | Hindustan Times
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Airlines stocks zoom 6 pc on FDI proposal

india Updated: Jul 08, 2010 11:13 IST

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Airline stocks rose as much as 6 per cent in early trade on the BSE, led by Jet Airways, amid a media report that foreign carriers may be permitted to purchase up to a 26 per cent stake in domestic airlines.

Shares of Jet Airways soared 5.32 per cent to hit a month-high of Rs 565.50 on the Bombay Stock Exchange. The scrip was trading at Rs 555.50, up 3.46 per cent, at 1015 hrs.

Meanwhile, the BSE benchmark Sensex was trading higher by 246.90 points, or 1.41 per cent, at 17,717.93.

At present, FDI in domestic airlines is permitted up to 49 per cent, but foreign carriers have been kept out till now due to security concerns.

"This issue would be discussed in coming few days. A final view may be taken shortly," a media report quoted Civil Aviation Minister Praful Patel as saying.

Kingfisher Airlines was trading at Rs 50.55, up 1.10 per cent. In morning trade, the stock rose 2 per cent to touch a month-high of Rs 51.

Low-cost carrier Spicejet was being quoted at Rs 56.45, up 0.71 per cent.

The government may lift a ban on foreign airlines and allow them to invest in their Indian peers in order to attract more funds and raise operating standards.