Spicejet sky rockets: kisses nine year high

Stock of Spicejet rallied to a more than nine year high of Rs 101, on Monday, increasing 7.22 per cent in early trade; and is now trading at Rs 98.8 on an intraday basis. Its stock price has witnessed spurt in volume by more than 1.06 times.

Spicejet’s stock price is trading at its highest level since January 9, 2008. It hit a record high of Rs 115 on September 5, 2005 during intra-day trade.

Internal factors as well as external ones acted as a trigger for increasing the stock price of the Company over the last week. Robust passenger traffic growth in February month, a weakening dollar and lower crude oil prices led the rally in aviation stocks. The fuel, maintenance, lease costs are dollar denominated and any weakness in the greenback versus the rupee benefits the airlines.

Spicejet’s stock price increased 66.67 per cent in last couple of months, outperforming the benchmark indices, which rose more than 4 per cent during the same time. At the same time, competitors such as Jet Airways are up more than 40 per cent and InterGlobe Aviation also rose almost 30 per cent.