Airline shares rally on hopes for FDI measures

SpiceJet rose about 5.8% and was trading up 5.3%. Kingfisher rose 2.3%, while Jet Airways gained 1.8%

Airline shares, including SpiceJet, jumped on Wednesday after the Times of India newspaper reported the government is preparing measures to potentially allow foreign investment in the sector.

The daily newspaper cited a senior government official saying measures on foreign direct investment, including possibly in multi-brand retail, could come after Friday's cabinet meeting.

SpiceJet shares rose as much as 5.8 percent, and was trading up 5.3 percent. Kingfisher rose 2.3 percent, while Jet Airways gained 1.8 percent.

Under current rules, foreign airlines are barred from buying stakes in domestic carriers, although foreign investors are allowed to hold a cumulative 49 percent.