Shares in Jet Airways rose as much as 6 percent on Thursday, a day after a senior Indian government source told reporters the carrier was the front-runner to win an investment from Etihad Airways.
The Gulf carrier could pay up to $330 million for a 24 percent stake in Jet, and a deal is likely in the next 10 days, the official said.
Jet Airways India Ltd was up 5.2 percent as of 0349 GMT. However, shares of Kingfisher Airlines, which had been vying with Jet to win the Etihad investment, fell 2.6 percent.
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Jet Airways soars nearly 7% on hopes of deal with Etihad
Mumbai, Jan 3 (PTI):Shares of Jet Airways today rose by as much as 7 per cent amid growing expectations of a possible deal between the airline and United Arab Emirates' Etihad Airways for stake sale.
After a positive opening, shares of the company further gained 6.74 per cent to Rs 618.70 on the BSE.
At NSE, the stock shot up by 6.17 per cent to Rs 615.65.
According to reports, Jet may strike a deal with Etihad, although there have been no official word on the same.
The stock has rallied over 65 per cent since November last year till date on stake sale speculation.
Market experts said the uptick in the counter was largely on the back of stake sale report regarding the airlines.
Rally in the stock outperformed the broader market gain where the BSE benchmark Sensex was trading at 19,759.21, up 46.84 points in afternoon trade.