Aviation sector stocks such as SpiceJet and InterGlobe Aviation rose up to 10% after Civil Aviation Minister Hardeep Singh Puri said that domestic flights will resume from May 25 "in a calibrated manner". Share price of country's leading airline InterGlobe Aviation gained up to 9.88% to Rs 1,002 compared to the previous close of Rs 911.90 on BSE. InterGlobe Aviation share with a gain of 9.88% on BSE. Total 1.89 lakh shares of InterGlobe Aviation changed hands amounting to turnover of Rs 18.31 crore.
However, InterGlobe Aviation share price has lost 33.69% in one year and fallen 26.59% since the beginning of this year.
Domestic flights to resume from May 25: IndiGo, SpiceJet gear up for post-lockdown operations
Similarly, share price of SpiceJet was locked in upper circuit of 5% at Rs 42.95 compared to the previous close of Rs 40.95. Total 0.43 lakh shares of the airline changed hands amounting to turnover of Rs 18.26 lakh on BSE.
SpiceJet stock has gained after 3 days of consecutive fall. There were only buyers no sellers for the stock in early trade.
SpiceJet share price has lost 66.09% in one year and declined 61.89% since the beginning of this year. The small cap stock is trading higher than 20 day moving averages but lower than 5 day, 50 day, 100 day and 200 day moving averages.
Modi government suspended all commercial passenger flights in India on March 25, when the lockdown was first imposed to contain the spread of the novel coronavirus. However, with Railways already resuming partial operations in lockdown 3 and 4, government decided to restart airlines in a phased manner in a step toward state of normalcy before the end of lockdown on May 31.
Civil Aviation Minister Hardeep Singh Puri said in a tweet, "Domestic civil aviation operations will recommence in a calibrated manner from Monday 25th May 2020. All airports and air carriers are being informed to be ready for operations from 25th May. SOPs for passenger movement are also being separately issued by the Aviation Ministry."
Earlier on May 17, the Directorate General of Civil Aviation (DGCA) had announced that all domestic and international flights will be suspended till May 31 midnight in wake of the extended lockdown in India. This announcement was made after the central government extended the nationwide lockdown by two more weeks till May 31 to prevent the spread of coronavirus.
By Aseem Thapliyal