Aviation stocks traded mixed in the morning trade on BSE in the wake of GoFirst bankruptcy news. Shares of InterGlobe Aviation Ltd, SpiceJet Ltd, Jet Airways (India) Ltd rose between 1% and 6% on Wednesday, while Tal Enterprises Ltd fell over 1%.
On Tuesday, Indian low-cost carrier, GoFirst filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi.
The airline has temporarily suspended operations on May 3 and May 4 due to severe cash crunch, the company’s CEO Kaushik Khona told news agency PTI on Tuesday.
Analysts expect IndiGo to gain the largest market share as a result of the bankruptcy of GoFirst. Also, a sharp fall in crude oil will benefit aviation stocks.
SpiceJet, on the other hand, is reviving grounded planes to take advantage of Go being off air.
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