From lockdown to lift-off! Spicejet, Interglobe to IRCTC share prices on a high as travel curbs set to go

Aviation stocks today saw good traction amid news of resumption of aviation activity from Monday, May 25. Airline stocks, including Interglobe Aviation and Spicejet, today, gained by almost 7 per cent and 5 per cent respectively. Railway stocks including Indian Railway Catering and Tourism Corporation Ltd (IRCTC) and Rail Vikas Nigam Ltd (RVNL) were also up by 5 per cent and 2 per cent respectively.

The Union Minister for Civil Aviation today addressed a press conference and announced the new air travel guidelines. Zee Business’ Mansi Dave has an exclusive report on what these developments mean for the aviation industry and the stocks.

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The government has decided to keep domestic air travel out from the list of banned activities during the fourth phase of the lockdown, which has augured well for the aviation sector stocks, Dave said. The domestic air travel activity will resume from Monday (25 May). The resumption starts after two months of hiatus.

Among the other important developments, private airlines will be part of the Vande Bharat mission, Dave said.

The Airport Authority of India (AAI) today issued new guidelines before the resumption of flight services in the country. The guidelines mandate strict sanitisation for all airports. The guidelines also prescribe for compulsorily walk through the thermal screening zone before entering the terminal building, by the passengers. Airport operators have also been asked to make appropriate arrangements for sanitisation of passengers' baggage before entry into the terminal building. 

The railway stocks were also the focus in today’s trade as stocks of IRCTC, RVNL and Titagarh Wagons gained.  The IRCTC is also expected to come on track soon, Dave said adding that the Indian Railways has decided to run additional 200 trains from 1 June 2020. Out of the 200 trains, bookings for 75 trains have already begun from today.

The additional trains will also have non-AC coaches, she said. The trains which are likely to run from 1 June will include Duronto, Sampark Kranti and Jan Shtabdi. The Railways has already been running 15 AC special trains since 12 May and from 1 June the trains will be run according to a full schedule.

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These developments have given a momentum to the railway stocks today as IRCTC, Rail. Clearly the focus was on aviation and railway stocks today, Dave said.