Shares of SpiceJet went down by 3.25 per cent to close at Rs 67.05, InterGlobe Aviation slipped 3.09 per cent to Rs 1,038.05 and Jet Airways fell by 1.53 per cent to Rs 577.15 on BSE.

Foreign investors, barring overseas airlines, can now have up to 100 per cent stake in local carriers, the government said on Monday unveiling significant reforms.

If spike in oil prices wasn't enough to scare investors, a host of passenger-friendly measures announced on Saturday by Civil Aviation ministry, will surely do. Should you go underweight on these stocks?

Participation in the domestic markets remained weak on Day 1 of January F&O series as most of global equity markets stayed closed to observe New Year's Day.

Initially, both the bellwether indices of the equity markets opened on a flat note in sync with their Asian peers.

The S&P BSE Sensex ended the day 43.60 points down at 25,775.74, ahead of the holiday on Wednesday on account of Gurunanak Jayanti.

\"We expect the bounce on Nifty to get extended towards 7850-7900 levels, while 7700 remains to be a strong support for the index,\" said Angel Broking in a research note.

Shares of SpiceJet and Interglobe Aviation rallied up to 9 per cent, but Jet Airways fell 4 per cent after the airlines said they would pursue legal steps against CCI orde.

Aviation stocks rose up to 4 per cent in the morning trade, only to return in the negative territory as the session progressed after IndiGo listed on stock exchanges.

In the previous session, the stock settled at Rs 436.70, up 9.36 per cent, while it hit an intraday high of Rs 472, up 8.08 per cent in today's trade.

Sentiment this week has taken a hit due to caution about earnings and the US Federal Reserve's statement putting into play a rate hike this year.

Demand was particularly strong among foreign institutional investors, who placed orders that were 15 times more than the number slotted for all institutional investors by InterGlobe Aviation Ltd, IndiGo's parent company

The stocks surged after the much-awaited IndiGo IPO received positive response on the first day of the launch and fetched Rs 832 crore from anchor investors on Monday.

IndiGo, India's largest airline by passenger numbers, is the only consistently profitable local carrier for the past seven years, according to consultancy Centre for Aviation (CAPA).

The promoters intend to raise Rs 3,018 crore via the initial public offer, the biggest in nearly three years. The airline has fixed a price band of Rs 700-765 per share for the public issue.

FIIs were net buyers during the week with purchases worth $297 million, and the rupee strengthened to 64.82 against the dollar due to positive cues from equity markets.

The reduction came on the first day of the roadshow for the much-awaited IPO, which is being seen as a test case for the revival of big-ticket share sales in the primary market.

Global brokerage firm BofA-ML estimates TCS to log 4 per cent quarter-on-quarter sequential revenue growth, weaker than the recent Q2 performances.

Ola and Uber are burning cash and they have no immediate plans to turn profitable either. They are chasing market share.

Dubai's budget carrier flydubai also said it was not in talks with SpiceJet for any investment.