Aviation stocks face turbulence with cap on baggage, flight cancellations; fall nearly 2%
In a reaction to new changes such as cap on baggage charges and cancellation charges proposed in the new Civil Aviation Policy the aviation sector stocks fell nearly 2% on Monday morning.
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Jet Airways stock on BSE at 1015 hours fell by 10.85 points or 1.91% at Rs 557.80 per piece. On NSE it was down 1.85% or 10.55 points at Rs 559.05 per piece at 1013 hours.
While Indigo stock on BSE similarly declined by 18.10 points or 1.81% at Rs 980.80 per piece. On NSE it was down 1.53% or 15.30 points at 1027 hours.
SpiceJet stocks on BSE at 1017 hours was down 1.33% or 0.85 points at Rs 62.90 per piece.
The government on Saturday had proposed to cap excess baggage charges to Rs 100 per kg. At present airlines charge Rs 300 on baggage over 15 kg. The aviation regulator, Directorate General of Civil Aviation (DGCA) proposed to cap flight cancellation charges.
Apart from this, the markets falling by over 1% in early trade did not help.
At 10 am, the 30-scrip Sensitive Index (Sensex), was trading 272 points or 1.02% lower during the morning session. The wider 51-scrip Nifty of the National Stock Exchange (NSE) was also trading 72.25 points or 0.89% lower at 8,097.80 points.