Airline stocks were seen soaring high on Wednesday fuelled by reports that merger plan of Jet Airways and Air Sahara was about to fall apart, even as market analysts said failure of the deal would benefit Jet.
Market analysts, who have been maintaining that the deal was overvalued, said on Wednesday that it would be a blessing in disguise for not only Jet Airways but also other aviation stocks if the planned deal comes apart or Jet manages to lower the acquisition price for Air Sahara.
An across-the-board buying interest was seen on the airline counters on Wednesday as reports poured in about the Jet-Sahara deal hitting yet another roadblock.
Jet Airways' market valuation has plunged by nearly 35 per cent ever since the deal was signed in January, a leading market analyst said while adding that the market has always been sceptical about it.
Newly listed Deccan Aviation, which operates low-cost airline Air Deccan, also got a fresh lease of life after making a disappointing debut earlier this month.
Other three listed airline companies -- Jet Airways, SpiceJet and Jagson Airlines -- gained significant ground, making a smart turnaround from sluggish trends that has lasted for over a year now.
Jet Airways' shares settled 5.10 per cent higher at Rs 705.70, after hitting an intraday high of Rs 715. The company's shares had plunged to a 52-week low of Rs 600 on June 9, from a high of Rs 1,344 on July 21, 2005.
SpiceJet also closed 5.04 per cent higher at Rs 42.75 after surging to as high as Rs 43.90, while Jagson Airlines moved up 4.7 per cent to Rs 27.85. SpiceJet had plunged to a 52-week low of Rs 35.20 on June 9, from a 52-high of Rs 115.40 on September 5, 2005.
© 2026