Budget 2024: Aviation and allied stocks trade mixed as FM proposes ‘UDAN’ scheme on 517 new routes

Aviation-related stocks traded mixed after Finance Minister Nirmala Sitharaman, in her Interim Budget speech on Thursday, February 1, proposed the ‘UDAN’ scheme on 517 new routes connecting tier-2 and tier-3 cities.

At around 12:20 pm, Spicejet shares traded with a cut of 1.7 per cent at Rs 63.89, while shares of Interglobe Aviation-operating no-frills air carrier Indigo traded with over 2 per cent gains at Rs 3,022 per share.

“The aviation sector has been galvanised in the past ten years. The number of airports has doubled to 149. The rollout of air connectivity to tier-two and tier-three cities under the UDAN-19 scheme has been widespread. Five hundred and seventeen new routes are carrying 1.3 crore passengers. Indian carriers have pro-actively placed orders for over 1000 new aircraft. Expansion of existing airports and development of new airports will continue expeditiously,” read the budget speech of Nirmala Sitharaman.

The move by the centre is seen to augment domestic connectivity and travel.

Meanwhile, GMR Airports traded with a cut of over 1 per cent at Rs 77.34 per share.

"Key features of the budget are focus on infrastructure, tourism, logistics and innovation in research. All these measures will bring continuous sustainable growth of the economy. This shows the continued commitment of the existing government to move towards bringing fiscal prudence and reaching to the targeted fiscal deficit of 4.5% of GDP by FY26," noted Pradeep Gupta, Co-founder & Vice-Chairman, Anand Rathi Group.