Shares of budget carrier SpiceJet rose sharply in Thursday’s trade amid heavy volumes. The stock jumped 13.35 per cent to hit a day high of Rs 36.50 over its previous close of Rs 32.20. Around 6.56 lakh shares changed hands today on BSE, which was more than two times higher than SpiceJet’s two-week average volume of 2.56 lakh shares.
Turnover on the counter stood at Rs 2.30 crore, commanding a market capitalisation (m-cap) of Rs 2,151.60 crore. There were 1,61,599 buy orders against sell orders of 1,32,846 shares.
“The Centre’s move to cut windfall tax on aviation turbine fuel (ATF) may be the reason behind SpiceJet’s surge. Some other stocks which benefit from the move also climbed today,” an industry source said, requesting anonymity, said.
The government today reduced the windfall tax levied on domestically produced crude oil, as well as on the export of diesel and jet fuel. Windfall tax on domestically produced crude oil has been reduced to Rs 4,350 per tonne from Rs 5,050 per tonne, while the tax on overseas shipment of ATF has been cut to Rs 1.50 per litre from Rs 6 a litre.
On the technical front, support on the counter could be seen at Rs Rs 33.35, an analyst said. “SpiceJet looks bullish on the daily charts and a close above resistance of Rs 35 could lead to targets of Rs 39-41 in the near term. Support will be at Rs 33.35,” said AR Ramachandran from Tips2trades.
The stock was last seen trading higher than 5-day moving averages but lower than 20-day, 50-, 100- and 200-day moving averages. The counter’s 14-day relative strength index (RSI) came at 50.82. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company’s stock has a negative price-to-equity (P/E) ratio of 0.94.
SpiceJet has a one-year beta of 1.14, indicating high volatility on the counter.
Recently, the scrip declined after the Supreme Court directed the airline to encash bank guarantee and pay Rs 270 crore to its former promoter Kalanithi Maran. The top court said the bank guarantee of Rs 270 crore of SpiceJet must be encashed immediately and paid to Maran and his Kal Airways towards dues from the arbitral award of Rs 578 crore.
Spicejet has also postponed the board meeting to approve financial results for the December quarter (Q3 FY23) and rescheduled it to February 24, 2023.
Meanwhile, Indian equity benchmarks traded higher in late deals today, led by gains in technology and metal stocks. As of 2:41 pm, the 30-share BSE Sensex pack rose 125 points or 0.20 per cent to trade at 61,400; while the broader NSE Nifty index moved 40 points or 0.22 per cent higher to trade at 18,056.
Also read: Adani Enterprises shares cut gains after clarification; stock still up for 3rd straight day
Also read: PI Industries shares jump 9% after Q3 results; can they re-test 52-week high level?
