Jet Airways share price surges 150% intra day ahead of NCLT order on insolvency plea, closes 122% higher

Jet Airways share price surges 150% intra day ahead of NCLT order on insolvency plea, closes 122% higher

The sudden rise in Jet Airways stock comes ahead of an order to be passed by National Company Law Tribunal (NCLT) on insolvency plea filed by country's largest lender SBI.

Advertisement
BusinessToday.In
  • Jun 20, 2019,
  • Updated Jun 25, 2019 10:31 AM IST

Jet Airways share price sprang a surprise today after days of thrashing after the ailing airline found itself stuck in muddy waters of debt trap invoking lenders to approach insolvency court to recover their dues. Jet Airways share, which hit a fresh 52-week low of 27 in trade today rebounded 133% amid short covering to hit an intra day high of 77.35 on BSE. The sudden rise in Jet Airways stock comes ahead of an order to be passed by National Company Law Tribunal (NCLT) on insolvency plea filed by country's largest lender SBI. The order is expected to be passed at 5 pm today.

Advertisement

After falling for the last 13 sessions, Jet Airways share price closed 93.35% or 30.90 points higher at 64 level compared to the previous close of 33.10 on BSE.  In last 13 sessions, Jet share price has lost 78%. The stock opened at a loss of 8.76% at 30.20 on BSE.  

On NSE, Jet Airways share closed 122.21% or 40 points higher at 73.55 compared to the previous close of 33.10.

Mustafa Nadeem, CEO at Epic Research said, "There is a bounce in stock just before when the matter is going in the NCLT. The stock did jump on huge volume. When we look at the Derivatives data of Jet in Futures we believe it a merely short covering that was triggered. There is a lot of debt on the company and the list is too long. The creditors, lenders, Leasors, employees, the fleet also comprise of planes that are on rent. So we don't think there can be some big turnaround. We have seen this kind of volume before and the jump. That turned out to be a trap. It is about time that this one would also prove to be the same."

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Jet Airways share price sprang a surprise today after days of thrashing after the ailing airline found itself stuck in muddy waters of debt trap invoking lenders to approach insolvency court to recover their dues. Jet Airways share, which hit a fresh 52-week low of 27 in trade today rebounded 133% amid short covering to hit an intra day high of 77.35 on BSE. The sudden rise in Jet Airways stock comes ahead of an order to be passed by National Company Law Tribunal (NCLT) on insolvency plea filed by country's largest lender SBI. The order is expected to be passed at 5 pm today.

Advertisement

After falling for the last 13 sessions, Jet Airways share price closed 93.35% or 30.90 points higher at 64 level compared to the previous close of 33.10 on BSE.  In last 13 sessions, Jet share price has lost 78%. The stock opened at a loss of 8.76% at 30.20 on BSE.  

On NSE, Jet Airways share closed 122.21% or 40 points higher at 73.55 compared to the previous close of 33.10.

Mustafa Nadeem, CEO at Epic Research said, "There is a bounce in stock just before when the matter is going in the NCLT. The stock did jump on huge volume. When we look at the Derivatives data of Jet in Futures we believe it a merely short covering that was triggered. There is a lot of debt on the company and the list is too long. The creditors, lenders, Leasors, employees, the fleet also comprise of planes that are on rent. So we don't think there can be some big turnaround. We have seen this kind of volume before and the jump. That turned out to be a trap. It is about time that this one would also prove to be the same."

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.
Read more!
Advertisement