Airline stocks rally 4 pc on FDI report

MUMBAI: The airline counters on Thursday gained as much as 4 percent amid media reports that foreign carriers may be permitted to pick up 26 percent stake in domestic airlines.

Shares of Jet Airways settled 4.22 percent at Rs 559.55 on the Bombay Stock Exchange after jumping 6.51 percent to touch a month high of Rs 571.90.

Kingfisher Airlines closed at Rs 50.25, up 0.50 percent. During market the stock rose 2.6 percent to hit a month of Rs 51.30, while low-cost carrier Spicejet finished at Rs 56.20, up 0.27 percent.

Meanwhile, the BSE 30-share index Sensex also closed 181 points higher or 1.03 percent to 17,651.73.

At present, FDI in domestic airlines is permitted up to 49 percent, but foreign carriers have been kept out due to security concerns.