Aviation stocks see mixed sentiments after Centre permits international air travel for passengers

The new guidelines will come into effect from August 01, 2020.

Jul 30, 2020 10:07 IST India Infoline News Service

International air travel which has been banned in India since over four months now has finally seen some relief in restrictions as a part of Unlock-3 guidelines amid Covid-19 pandemic. Indian airlines are already operational on the domestic front, however, with limited flights and seats. With the ban lifted on overseas travel, the airlines may see a further boost in their performance and hence financial positions.

On Wednesday, the Ministry of Home Affairs while enforcing the lockdown in containment zones till August 31, 2020, for aviation industry said, "International air travel of passengers has been permitted in a limited manner under the Vande Bharat mission.  Further opening-up will take place in a calibrated manner."

The new guidelines will come into effect from August 01, 2020.

Civil Aviation Minister, Hardeep Singh Puri tweeted saying, "As we prepare to dovetail into Phase-5 of VBM from 1 to 31 August, we continue to add more flights & destinations to facilitate evacuation & outbound travel of stranded Indians."

"We also hope to add more countries to the list as we progress & ramp up the reach of our operations," Puri added.

However, on Thursday, investors had mixed sentiments while trading in aviation stocks like Interglobe Aviation (Indigo) and SpiceJet.

On Sensex, at around 09.54 AM, the Indigo stock was trading at Rs926.80 per piece zooming by 1.87%. Although the stock opened on a lower note at Rs873.10 per piece compared to the previous closing, however, reversed the trend and has gained to an intraday high of Rs930 per piece.

On the contrary, SpiceJet stock witnessing selling bias, trading at Rs47.95 per piece down by 1.13%. The stock which opened at Rs47.15 per piece has clocked an intraday high and low of Rs48.10 per piece and Rs46.90 per piece respectively. 

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