Mumbai: Jet Airways (India) Ltd and Kingfisher Airlines Ltd, the nation’s two largest domestic carriers, surged to seven-month highs in Mumbai on speculation the country’s new government may ease investment rules.
Jet Airways rose 14% to Rs278.35 at close of trading. Kingfisher climbed 28% to Rs56.65. SpiceJet Ltd, the New Delhi-based discount carrier backed by billionaire Wilbur Ross, gained 18% to Rs18.69.
The ruling Congress-led United Progressive Alliance coalition may abolish a decade-old ban on overseas carriers owning stakes in domestic airlines after winning a larger majority in the general election last week, said Nikhil Vora, an IDFC-SSKI Securities analyst.
Airlines in India have been seeking investments to pay for new planes amid mounting losses.
Expectations of foreign direct investments getting relaxed in the aviation sector is the driver for the share rally, Vora said.