Shares of Jet Airways on Tuesday surged 7 per cent to touch its one-year high level in morning trade amid reports of a possible deal between the airline and United Arab Emirates' Etihad Airways for stake sale.

Following the market buzz, the stock opened the day on a bullish note and further jumped 6.13 per cent to Rs 590 on the Bombay Stock Exchange.

At NSE, the scrip soared 7 per cent to Rs 594 -- its 52-week high level.

Market experts said the uptick

in the counter is largely on the back of stake sale report regarding the airlines.

The stock has rallied nearly 51 per cent last month on stake sale speculation.

There had been reports that top Jet officials have recently been in the UAE to hold talks for a possible deal with Etihad, although there have been on official word on the same.

Reacting to reports about a possible deal with UAE's Etihad Airways, Jet had last month said: "We are aware that recently there has been much speculation in the press.

The company, however, cannot comment on such speculative reports."