Jet Airways surges another 5%; 'investors reallocating funds from SpiceJet to this airline'

NEW DELHI: Jet Airways continued to fly high on Dalal Street; surging as much as 4.86 per cent in intraday trade.

Jet shares have soared 80% since November 25, outpacing the BSE 500 index, on hopes the company would benefit from the recent mass flight cancellations by SpiceJet.

The BSE 500 index gained only marginally in the period. "Investors are reallocating their funds from SpiceJet to Jet Airways, while new investors are also buying the stock because it's the only airline company available in the listed space besides SpiceJet," said Mehraboon Irani, principal & head — private client group business at Nirmal Bang Securities.

SpiceJet shares have fallen 24% since December 1 when the troubles at the company erupted, even though ace investor Rakesh Jhunjhunwala picked up 75 lakh shares of SpiceJet for more than Rs 13 crore through open market route in November end.

At 11:02 a.m., Jet Airways was trading at Rs 447.5, up 2.46 per cent or Rs 10.75 on the BSE.