Aviation shares surge on hopes of FDI

The shares of the aviation sector rose on Wednesday after reports that the government will take measures to allow foreign investment in the sector.

As per reports, it also quoted by a senior government official saying that measures on foreign direct investment, including possibly in multi-brand retail, could come after Friday's cabinet meeting.

At 11.40 a.m. on BSE, SpiceJet was trading higher by 5.59% at Rs 31.15. It has hit a high of Rs 31.50.

Kingfisher Airlines Ltd surged 3.06% at Rs 9.09. It has hit a high of Rs 9.13.

Jet Airways Ltd was trading higher by 2.75% at Rs 345.75. It has hit a high of Rs 347.70 today.

The positive decision from government will boost the aviation sector which is under high debt and operational issues.

Currently, Indian policy allows up to 49% FDI in airlines. However, foreign carriers are not allowed to invest.

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