One man’s loss is another’s gain. Late last week, investors piled on to shares of SpiceJet Ltd and InterGlobe Aviation Ltd (IndiGo), after Jet Airways (India) Ltd’s troubles went from bad to worse. Shares of the two airlines gained 24.6% and 7.6%, respectively, in just two trading sessions last week after their beleaguered competitor was forced to ground a large number of its leased planes.
But after Jet Airways announced a bank-led bailout plan on Monday, the two stocks gave up some of their gains. The banks said they will infuse ₹1,500 crore into the airline to help revive operations and eventually ready it for a sale.
But here is the interesting bit. SpiceJet and IndiGo shares have given up only a small portion of their gains. At last count, they had corrected less than 2% each from last week’s close. Jet Airways’ shares, meanwhile, have risen 22.7% this week.
