JETAIRWAYS - 233418
Shares of Jet Airways (India) Ltd surged 133% on Thursday, their sharpest intra-day gain ever, before finally closing 93.35% up at ₹64 a share. The abnormal price movement, on a day Jet was admitted for bankruptcy proceedings, prompted stock exchanges to seek clarification from the grounded airline.
While a response from Jet is awaited, analysts attributed the surge to short covering by investors in the derivatives segment.
“The stock has gained due to huge short covering today," said Chandan Taparia, derivative and technical analyst at Motilal Oswal Securities Ltd.
“The stock has been in free fall all the way to ₹28 from ₹165 on 18 April when Jet halted operations. So, investors were continuously adding short positions. However, with Jet going to NCLT (National Company Law Tribunal), investors are reducing position with a view that there may be a possibility of a revival," he added.
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