SENSEX NIFTY
Mar 16, 2012, 03.52 PM IST | Source: Moneycontrol.com

Budget 2012: Aviation stocks down after FM announces ECBs for the sector

Shares of Jet Airways and SpiceJet lost around 2% and 5% even as the Union Budget 2012-13 highlighted external commercial borrowings (ECBs) of $1 billion which could be used towards their working capital requirements.

Shares of Jet Airways and SpiceJet lost around 2% and 5% even as the Union Budget 2012-13 highlighted external commercial borrowings (ECBs) of $1 billion which could be used towards aviation companies' working capital requirements.

The airline has expected an announcement highlighting foreign direct investment (FDI) into the sector so that their liquidity problems are eased.

But Finance Minister Pranab Mukherjee while announcing the budget said the FDI proposal is being considered actively by the government. However, experts say, absence of an FDI announcement may have disappointed investors.

Meanwhile, Jet was trading at 326.25 at 14 hours; SpiceJet was also down to 23.80.

 

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