Airline stocks continue flight

Airline stocks continued to hog the limelight for the second consecutive day on the back of reports about the planned merger of Jet Airways and Air Sahara finally crash landing.

Airline stocks soared further high in intraday trade adding to yesterday's robust gains, as further reports came in about Jet and Air Sahara parting ways from their planned merger.

However, Jet and Deccan Aviation failed to hold onto their intraday gains and closed marginally in the red on the back of profit booking at higher levels towards the end of trading. Jet Airways had jumped nearly 10 per cent in during the day.

In contrast, low-cost air carrier Spicejet witnessed continued buying support from bargain hunters for the second consecutive day and settled 10.53 per cent higher at Rs 47.25.

Jet closed 0.19 per cent down at Rs 704.35, after hitting an intraday high of Rs 770. The stock had moved up more than 5 per cent yesterday.

Newly listed Deccan Aviation, which operates the budget airline Air Deccan, also slipped into the red after paring all its intraday gains. The stock shed 0.28 per cent to end at Rs 89.75.

Deccan has managed to close with gains only in two trading sessions so far ever since it made a disappointing debut on the stock market on June 12. The stock is currently trading nearly 40 per cent below its issue price of Rs 148.

Jagson airlines rose 1.64 per cent to Rs 27.85, while extending its upward rally for the second day in a row.