Airline stocks will be in focus today as the long pending proposal of hiking foreign direct investment (FDI) in aviation will come up for discussion by the Committee of Secretaries.
Currently, the government allows about 49% in FDI in aviation sector. It has also barred foreign airlines from holding any stake either directly or indirectly in domestic carriers. The proposal is to hike this FDI limit to about 74% and to allow foreign carriers to have stake either directly or indirectly into the domestic carriers. This will rerate the already beaten down Airline stocks. Buy them now with strict stoplosses for the short term as of now.
Jet Airways, Kingfisher Airlines, Spice Jet
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