Kingfisher soars 6 percent on lower fuel tax hopes
Airline stocks surged following reports that the civil aviation ministry will meet with finance ministry to discuss lowering aviation turbine fuel taxes.
Shares in Indian airlines surged on reports that the civil aviation ministry will meet with finance ministry counterparts to discuss lowering aviation turbine fuel taxes, raising hopes of an announcement, traders said.
The civil aviation ministry had proposed earlier to slash state taxes on jet fuel, which would help bring down costs for ailing local airlines that are reeling under a debt load of $20 billion and annual losses of around $2 billion.
Kingfisher Airlines surged 6.6 percent, while Jet Airways surged 4.6 percent. SpiceJet rose 3.8 percent on BSE
Stubbornly high fuel prices, 11 percent rupee depreciation and lower load factors will lead to another quarter of losses for Jet Airways and SpiceJet for the December quarter.
Reports said measures on foreign direct investment, including possibly in multi-brand retail, could come after Friday's cabinet meeting.