Aviation stocks jump nearly 8% as govt eases FDI norms

The shares of aviation companies jumped by up to 8% on Monday after the government announced big-ticket changes to Foreign Direct Investment (FDI) policy in the country. Prime Minister Narendra Modi, who chaired the high-level FDI meet said that the changes will help get more overseas investment into the country and will create a lot of new jobs. 

Under the changes made to the aviation sector, 100% FDI in brownfield airport projects has been put under the automatic route from the current 74% permissible.

FDI in air transport, passenger airlines and regional air transport services has been hiked to 100%, with 49% under automatic route and above that, with the government's approval.

After the changes were announced, the stock of Jet Airways was trading up 6.56% or Rs 36.10 at Rs 586.10 per share. The shares of Spicejet and Indigo jumped 7.75% and 6.99% to Rs 69.55 and Rs 70.65 per share.

The benchmark 30-share Sensex closed up 241.01 or 0.91% higher at 26,886.92.