Shares of Jet Airways surged 20 per cent today following drop in crude oil prices and ICRA upgrading the rating on a Rs 3,210-crore loan facility.
Jet Airways' scrip zoomed 19.99 per cent to settle at Rs 322.05, its upper circuit limit at the BSE.
At the NSE, it soared 19.99 per cent to end at Rs 322.65.
On the volume front, 27.73 lakh shares of the company changed hands at the BSE, while over one crore shares were traded at the NSE during the day.
The ratings agency has upgraded the long-term rating assigned to the Rs 3,210 crore, fund-based bank facilities of Jet Airways to [ICRA]BB from [ICRA]C, a statement had said yesterday.
"The rating upgrade takes into account the improvement in the liquidity and credit profile of the company, arising from improved operating performance as well as support from its strategic partner-Etihad Airways PJSC," it said.
Brent crude oil contracts for January settlement were trading around USD 72/barrel, the lowest level since August 2010. Falling oil price is good news for India, which imports 80 per cent of its requirements. This will also help the country narrow its Current Account Deficit.
Fuel costs account for a chunk of airline expenses and falling oil price is likely to provide relief, say experts.
Meanwhile, similar buying was seen in the shares of another listed airline SpiceJet that surged 18.36 per cent to Rs 18.24 aided by decline in crude oil prices.
In terms of volume, 408.90 lakh shares of the company were traded at the BSE.
