Grounding of Boeing 737 MAX: SpiceJet shares recover after plunging 8% during intra-day trading; IndiGo climbs 2.11%
The shares of SpiceJet opened on a weak note and had slumped 7.99 percent to touch an intra-day low of Rs 72.50.
New Delhi: SpiceJet shares took a beating on Wednesday after aviation regulator Directorate General of Civil Aviation (DGCA) decided to ground Boeing 737 MAX 8 planes amid safety concerns.
However, airline stocks showed mixed trends as crisis-hit Jet Airways closed in the red while no-frills airline IndiGo gained.
The scrip of SpiceJet — which has 12 MAX 8 aircraft in its fleet — tumbled 8 percent in intra-day trading but managed to recoup losses to close little over 2 percent lower at Rs 77.15 on the BSE.
The company's shares opened on a weak note and had slumped 7.99 percent to touch an intra-day low of Rs 72.50.
The DGCA decision on Tuesday to ground MAX 8 planes comes after a crash of such an aircraft in Ethiopia killed 157 people on Sunday.
Following the move, SpiceJet has grounded all its 12 MAX 8 aircraft resulting in flight cancellations. Jet Airways has 5 such planes but all of them are already grounded.
Shares of Jet Airways fell 2.06 percent to end the day at Rs 240.60 on the BSE and had shed nearly 4 percent in intra-day trade.
The shares fell 1.67 percent to close at Rs 240.80 on the NSE.
"Consequent to the regulatory directive on the Boeing 737 MAX, SpiceJet has already initiated grounding of its MAX fleet," the airline said in a statement on Wednesday.
IndiGo, the country's largest airline in terms of market, saw its shares jump 2.11 percent to Rs 1,301.45 on the BSE. It went up over 2 percent to end at Rs 1,296.25 on the NSE.
IndiGo does not have Boeing planes in its fleet.
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