Heard on the Street: Rel Infra, Jet Airways
Share prices of aviation companies have been on a downward journey amid concerns that there could be a hike in aviation fuel prices after crude futures surged to its highest levels since October 2008.
By ET Bureau |
Rel Infra gains over 12% on sealink extension hopes
Reliance Infrastructure emerged as top gainer among Sensex stocks after its promoter Anil Ambani met Maharashtra chief minister Prithviraj Chavan to discuss Maharashtra State Road Development Corporation’s plan to construct a coastal road that links the suburbs to prime South Mumbai locations . The meeting, according analysts assumes significance as Reliance Infra, along with Hyundai Corporation, has al-ready bid for the Rs 5,000-crore project to extent Bandra-Worli Sealink to Haji Ali. Anil Ambani is learnt to have met the CM to ap-praise him of the project’s status. The Reliance Infra-Hyundai consortium, which is currently in the process of raising funds for the project, is expected to start work in about six months. Reliance Infrastructure jumped 12.2% to Rs 698 while the Sensex closed 0.6% down on Wednesday.
It’s hardlanding for airlines as fuel price rise fears grow
Share prices of aviation companies have been on a downward journey amid concerns that there could be a hike in aviation fuel prices after crude futures surged to its highest levels since October 2008. In a weak market on Wednesday, Jet Airways slipped 3.4% while SpiceJet fell 2 % on the BSE. Kingfisher Airlines and Jagson Airlines fell 1% and 4.7%, respectively, on the day. Crude futures have climbed to their highest levels in Asia amid a fall in Libyan production over violent protests and political uncertainties in the Middle East and African region. The surge in crude oil prices is likely to push up aviation fuel prices, which, in turn, will increase the operating costs of airliners. Jet fuel prices account for over 50% of operating cost of aviation firms.
(Contributed by Shailesh Menon & Anuradha Himatsingka)
Reliance Infrastructure emerged as top gainer among Sensex stocks after its promoter Anil Ambani met Maharashtra chief minister Prithviraj Chavan to discuss Maharashtra State Road Development Corporation’s plan to construct a coastal road that links the suburbs to prime South Mumbai locations . The meeting, according analysts assumes significance as Reliance Infra, along with Hyundai Corporation, has al-ready bid for the Rs 5,000-crore project to extent Bandra-Worli Sealink to Haji Ali. Anil Ambani is learnt to have met the CM to ap-praise him of the project’s status. The Reliance Infra-Hyundai consortium, which is currently in the process of raising funds for the project, is expected to start work in about six months. Reliance Infrastructure jumped 12.2% to Rs 698 while the Sensex closed 0.6% down on Wednesday.
It’s hardlanding for airlines as fuel price rise fears grow
Share prices of aviation companies have been on a downward journey amid concerns that there could be a hike in aviation fuel prices after crude futures surged to its highest levels since October 2008. In a weak market on Wednesday, Jet Airways slipped 3.4% while SpiceJet fell 2 % on the BSE. Kingfisher Airlines and Jagson Airlines fell 1% and 4.7%, respectively, on the day. Crude futures have climbed to their highest levels in Asia amid a fall in Libyan production over violent protests and political uncertainties in the Middle East and African region. The surge in crude oil prices is likely to push up aviation fuel prices, which, in turn, will increase the operating costs of airliners. Jet fuel prices account for over 50% of operating cost of aviation firms.
(Contributed by Shailesh Menon & Anuradha Himatsingka)
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