Shares of SpiceJet Ltd and InterGlobe Aviation Ltd soared on Friday, gaining about 10% and 5%, respectively. Alongside, shares of Jet Airways (India) Ltd fell by about 5% on reports that the Hinduja Group has failed to strike a deal with Etihad Airways to buy the Indian airline.
Jet Airways’ loss is its competitors’ gain, and this theme has been playing out every now and then on the Street.
But there were other factors as well that improved investor sentiment for aviation stocks. Brent crude prices had declined by 4.5% on Thursday.
What’s more, InterGlobe Aviation, which runs IndiGo, reported a sharp increase in market share in April. The airline’s share rose 300 basis points month-on-month to 49.9%. A basis point is one-hundredth of a percentage point.
