SpiceJet shows gain in market on emergence of value buying

Shares of SpiceJet bounced back Thursday, rising by over 3 per cent, on the emergence of value buying. The stock gained 3.24 per cent to close at Rs 79.65 on BSE. During the day, it went up by 3.88 per cent to Rs 80.15.

On the volume front, 17.58 lakh shares were traded on BSE during the day. SpiceJet shares took a beating on Wednesday after aviation regulator DGCA decided to ground Boeing 737 MAX 8 planes amid safety concerns.

The scrip of SpiceJet -- which has 12 MAX 8 aircraft in its fleet -- tumbled 8 per cent in intra-day trading Wednesday but managed to recoup losses to close little over 2 per cent lower at Rs 77.15 on BSE. The Directorate General of Civil Aviation's (DGCA) decision on Tuesday to ground MAX 8 planes comes after a crash of such an aircraft in Ethiopia that killed 157 people aboard.

Following the move, SpiceJet has grounded all its 12 MAX 8 aircraft resulting in flight cancellations. Jet Airways has 5 such planes but all of them are already grounded. Shares of Jet Airways fell 1.54 per cent to close at Rs 236.90 on BSE. Shares of InterGlobe Aviation, which runs IndiGo, ended flat at Rs 1,299.55, down 0.15 per cent. IndiGo does not have Boeing planes in its fleet.