Stock market: Why Airlines shares performed well today; IndiGo, SpiceJet jump upto 13%
Beating the market, share price of InterGlobe Aviation surged as much as 12.84 per cent to Rs 1,029 compared to the previous close of Rs 911.90 on BSE
- May 21, 2020,
- Updated May 21, 2020 9:31 PM IST
Shares of airlines soared up to 13 per cent on domestic bourses on Thursday after the Civil Aviation Ministry announced domestic flights will resume operations from May 25 "in a calibrated manner". In comparison, the BSE Sensex ended 114 points, or 0.37 per cent, higher at 30,932.
The rally in the aviation sector, one of the worst-hit in the COVID-19 crisis, comes with InterGlobe Aviation, the parent company of IndiGo airline, and SpiceJet bouncing back after recent fall. For now, investors are buoyed by the government's decision to resume services.
Beating the market, share price of InterGlobe Aviation, India's largest airline by passengers carried and fleet size, surged as much as 12.84 per cent to Rs 1,029 compared to the previous close of Rs 911.90 on BSE. Paring some of early gains, InterGlobe Aviation stock closed Thursday's trade at Rs 978.25, up 7.28 per cent.
On the volume front, there was surge in buying as 7.57 lakh shares changed hand over the counter as compared to two-week average volume of 1.44 lakh shares on the BSE.
InterGlobe Aviation share price has lost 33.69 per cent in last one year and 26.59 per cent since the beginning of this year.
In a similar trend, SpiceJet shares hit an upper circuit of 4.88 per cent to Rs 42.95 compared to the previous close of Rs 40.95. SpiceJet stock has gained after 3 days of consecutive fall. The company's share has lost 66.09 per cent in one year and 61.89 per cent since the beginning of this year.
Shares of airlines soared up to 13 per cent on domestic bourses on Thursday after the Civil Aviation Ministry announced domestic flights will resume operations from May 25 "in a calibrated manner". In comparison, the BSE Sensex ended 114 points, or 0.37 per cent, higher at 30,932.
The rally in the aviation sector, one of the worst-hit in the COVID-19 crisis, comes with InterGlobe Aviation, the parent company of IndiGo airline, and SpiceJet bouncing back after recent fall. For now, investors are buoyed by the government's decision to resume services.
Beating the market, share price of InterGlobe Aviation, India's largest airline by passengers carried and fleet size, surged as much as 12.84 per cent to Rs 1,029 compared to the previous close of Rs 911.90 on BSE. Paring some of early gains, InterGlobe Aviation stock closed Thursday's trade at Rs 978.25, up 7.28 per cent.
On the volume front, there was surge in buying as 7.57 lakh shares changed hand over the counter as compared to two-week average volume of 1.44 lakh shares on the BSE.
InterGlobe Aviation share price has lost 33.69 per cent in last one year and 26.59 per cent since the beginning of this year.
In a similar trend, SpiceJet shares hit an upper circuit of 4.88 per cent to Rs 42.95 compared to the previous close of Rs 40.95. SpiceJet stock has gained after 3 days of consecutive fall. The company's share has lost 66.09 per cent in one year and 61.89 per cent since the beginning of this year.