Shares of airline firms SpiceJet and Interglobe Aviation sinked in early trade today after the government banned all flights from the United Kingdom after the discovery of a new and more infectious coronavirus strain spreading in the country.
InterGlobe Aviation share crashed 10% to Rs 1,356 against previous close of Rs 1,507 on BSE. The share has lost 12.52% after the government announced ban on UK flights yesterday.
The share opened with a loss of 10% today. It trades higher than 100 day and 200 day moving averages but lower than 5 day, 20 day and 50 day moving averages. The share has gained 14% in one year and risen 10.64% since the beginning of this year. However, in a month, the share has lost 11.03%. Market cap of the firm fell to Rs 56,903 crore.
Share of budget airline SpiceJet too fell 10% to Rs 82.35 against previous close of Rs 91.45 on BSE. It opened with a loss of 7.82% at Rs 84.30 today. The share has lost 17.62% in two sessions after the government announced flight ban from UK in afternoon yesterday. Later, it touched an intraday low of Rs 82.35 (9.95%). The share trades higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
The share has lost 11.82% in one year and fallen 24.89% since the beginning of this year. However in a month, the stock has gained 16.36%. Market cap of the airline fell to Rs 5,076 crore.
At 10:30 am, the SpiceJet stock was trading 7.82% lower at Rs 84.30 against previous close of Rs 91.45.
The air travel ban will stay till 23:59 pm on December 31. The suspension of all UK flights will begin from 23:59 pm on Tuesday. The decision to suspend all UK flights was taken considering the "prevailing situation on the UK", the government said.
India has become the 10th country to suspend travel to and from the UK over the new coronavirus variant detected in the country after Prime Minister Boris Johnson announced that an infection was fast spreading in southern England.
The new strain of coronavirus is reportedly up to 70 per cent more infectious. On Saturday, France, Germany, Italy, the Netherlands, Belgium, Austria, Canada, Ireland and Bulgaria had announced restrictions on UK travel hours after Boris Johnson made the announcement.