Shares of airline companies surged 6-8% on hopes that the government may allow foreign airlines to invest in the domestic sector.
The sentiment was boosted after the Union Cabinet late Thursday cleared the proposal for 100% foreign direct investment in single brand brand retail, and 50% in multi-brand retail.
According to current regulations, the limit for foreign direct investment in the aviation sector is pegged at 49% and foreign airlines are not permitted to acquire stake in domestic airline companies.
SpiceJet was up 7.9% at Rs 23.25, Jet Airways was up 6% at Rs 262.50 and Kingfisher Airlines was up 5.8% at Rs 26.60.
