Aviation stocks climb on FDI hopesApril 11th, 2012 - 6:53 pm ICT by IANS
Mumbai, April 11 (IANS) Share prices of aviation companies soared Wednesday on reports that the government would this week permit up to 49 percent foreign direct investment (FDI) in the sector, allowing foreign airlines to pick up stakes in domestic carriers.
The cabinet is expected to take up the issue at a meeting Thursday, sources said.
The commerce and industry ministry has mooted the proposal to allow up to 49 percent FDI in the sector, enabling the ailing firms like Kingfisher to raise money from overseas. If approved, it could pave the way for start-up joint ventures.
Share price of Vijay Mallya-led Kingfisher Airlines climbed 6.43 percent to Rs.19.85. The cash-strapped carrier is seen to be the biggest beneficiary of the government’s imminent move.
SpiceJet rallied 5.45 percent at Rs.29. Jet Airways soared 5.26 percent to close at Rs.358.50 at the Bombay Stock Exchange.
The aviation stocks rallied bucking the weak overall market trend. The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed 0.26 percent down at 17,199.40 points.
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- 24 percent cap on FDI by international airlines proposed - Nov 17, 2011
- Decision on aviation FDI deferred for next cabinet meet - Apr 12, 2012
- PM to meet airline chiefs Saturday (Lead) - Nov 25, 2011
- Focus on rationalising sales tax on ATF: CII - Feb 05, 2012
- PM to meet airlines chiefs Saturday - Nov 25, 2011
- 'Proposal for FDI in domestic carriers sent to commerce ministry' - Feb 23, 2012
- Sensex closes 78 points up to touch 14-month high (Roundup) - Sep 17, 2012
- FDI in aviation may give flight to domestic airlines - Jan 22, 2012
- Rationalise tax structure for aviation sector: Assocham - Nov 12, 2011
- GoM to look into foreign capital in domestic airlines - Jan 13, 2012
- FDI reform lifted mood in aviation industry: Ajit Singh - Sep 21, 2012
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