Jet Airways shares gain on FDI buzz

Shares of Jet Airways ended 2.2 per cent higher on Thursday on reports that the government may take a decision on Friday allowing foreign airlines to buy up to 49 per cent stake in cash-starved Indian carriers.

Jet Airways shares closed at Rs 361 on Thursday.

Among other airline stocks, Kingfisher Airlines rose 5.3 per cent while SpiceJet jumped nearly 4.6 per cent.

"It is widely expected that the Cabinet may relax FDI norms in its meeting on Friday. This has sent airline stocks flying. Any move in the cabinet meeting to allow foreign airlines to pick up equity of up to 49 per cent could mean further rise in these stocks," Inventure Growth & Securities Chairman & MD Nagji K Rita said.

"It is listed (in the agenda)," Commerce and Industry Minister Anand Sharma said on Thursday.

At present, India allows foreign investors, not related to airline business, to buy up to 49 per cent stake in domestic airlines, but foreign carriers are not permitted to invest in them.