Aviation stocks take off

Jet Airways is the top gainer on the BSE, currently up over 6% at Rs.350 with an intra day high of Rs.354.50 and a low of Rs.333.10. Volumes are huge at around 9 lakh shares today alone compared to two week average of 4 lakh shares. Spicejet is also up over 13.5%, hitting a 52-week high at Rs.36.80. Volumes have surged over 3 times.

Aviation stocks are up on expectations that Q2 numbers of these companies will be very good, given the lower crude oil prices which translated into lower aviation fuel price. And though its fuel prices came down, the airplane companies did not hike prices and this is expected to give the companies better margins, just like it was in Q1.

Enthusiasm is high for Spicejet as it recently announced that it plans to place orders for new aircrafts in the next few months.