Shares of passenger carrier SpiceJet fell over 6 percent on Friday as an overall weak market trend on renewed fear due to a new COVID-19 variant weighed on the stock.
On the Bombay Stock Exchange (BSE), SpiceJet shares dropped as much as 6.36 percent to an intraday low of Rs 75.80 apiece. On the National Stock Exchange (NSE), the airline's shares fell to Rs 75.65 apiece intraday, down 6.48 percent.
At 10:40 am, SpiceJet shares traded 6.24 percent lower at Rs 75.90 apiece on the BSE. The benchmark Sensex index was 2.30 percent down at that time.
Global markets traded largely negative due to emerging fear around a new heavily mutated COVID-19 variant that has been detected in South Africa, raising concerns all over the world.
Following weak global cues, the Sensex opened nearly 1 percent or 540 points lower at 58,254. Nifty50 index declined over 197 points or 1 percent to 17,338. The broader market indices were trading over half a percent lower in early trade. Among sectors, all the indices opened in the red, except Nifty Pharma.
On Thursday, SpiceJet settled a lawsuit filed by aircraft lessor Goshawk and its trustee Wilmington Trust SP Services, Dublin, attempting to block the transfer of its cargo and logistics business to a separate company.
The settlement has paved the way for SpiceJet to complete the spin-off by January 2022.
Earlier this month, SpiceJet said that it had entered into an agreement with Boeing to settle outstanding claims related to grounding of 737 MAX aircraft. This paved the way for the induction of efficient and younger MAX aircraft into SpiceJet’s fleet and ensured the resumption of new aircraft deliveries from order of 155 MAX aircraft.
SpiceJet's fleet of 13 Max aircraft has not operated any commercial flight since March 2019 when the plane was grounded worldwide. The airline had subsequently raised claims with Boeing regarding "cost and losses".
First Published: IST