Post about Rs2,0000 deal on Wednesday, Jet Airways Airways scrip ended nearly 11 per cent higher on Thursday.
After surging 20 per cent to Rs688.60 -- its one-year high on the BSE in intra-day, the stock finally ended at Rs635.20, up 10.69 per cent from its previous close. At NSE, the scrip closed 9.96 per cent up at Rs630.25.
The market cap of the carrier rose by Rs529 crore to Rs5,483 crore.
"Jet Airways gained over 10 per cent for the day. The funds will help the company to reduce its high cost debt and can strategically help its international operations," said Nagji K Rita, Chairman & MD, Inventure Growth and Securities.
In the first ever investment by a foreign airline in an Indian carrier, Jet Airways on Wednesday announced plans to sell 24 per cent equity to Etihad Airways for about Rs2,058 crore, as part of a strategic alliance that would lead to a major expansion in their global network.
"The value of this equity investment is $379 million (about Rs2,058 crore) and will result in Etihad Airways holding 24 per cent of the enlarged share capital of Jet Airways," a joint statement by the two airlines had said.
"Substantial ownership and effective control will remain with Indian nationals, with Goyal as non-executive Chairman holding 51 per cent of the company," the statement said.
Buying was also seen in other aviation stocks, where Spicejet soared 18.24 per cent and Kingfisher Airlines rose by 0.88 per cent amid hopes of foreign direct investment in the sector.
Rising for the fourth day, Sensex on jumped by 227.49 points to end at six-week high of 19,406.85 on good buying in auto, metal, banking and power scrips amid hopes of at least 0.25 per cent interest rate cut by RBI and a rating upgrade by agencies. Today's closing was the index's highest closing since 19,427.56 on March 15.
Nifty also rose by 79.40 points or 1.36 per cent to finish at 5,916.30 on Thursday. HDFC, RIl, Tata Motors, ICICI Bank and ITC mainly drove benchmark indices higher. Dr Reddy's, Gail, Tata Motors, NTPC, Maruti Suzuki, Hero Motorcorp and M&M also shot up sharply.