Airlines stocks saw a sudden spurt in the prices after the decision came to allow the direct import of ATF by airline companies operating in India. A direct ATF import would translate to reduction in the sales tax required to be paid by the airliners. The decision was taken in a meeting of the Group of Ministers, Govt. of India, and this would now proceed for the cabinet approval for getting implemented.
A major decision to recommend the issuance of bonds with sovereign guarantee worth Rs 7,400 crore for Air India, was also taken in the same meeting. This restructuring package for dealing with the debt of Air India was approved by the GoM, headed by Mr. Pranab Mukherjee.
Back in the markets, the news of ATF import triggered airline stocks to shoot up in the trade. Jet Airways was flying high with over 8% gains, while the Kingfisher airlines was up by around 12%.
The Nifty continued to trade quiet. At 2:05 PM, the Nifty stood at 5351, down by 10 pts ro -0.19%.
Stocks from infrastrucure, cement telecom and financial segments have seen declines.
L&T is among the major losers, with the stock losing over 2% in the late trade. JPAssociates has lost 2.8%. IVRCL Infra has lost 4%.