Mumbai: Shares of Kingfisher Airlines on Wednesday soared over 6 percent amid speculations of Reliance being interested in the air carrier, even as Mukesh Ambani-led conglomerate termed such reports as speculative.
After surging more than 10 percent during the intra-day trade, Kingfisher stock pared some of these gains and closed 6.43 percent higher at Rs 19.85 on the BSE.
On the other hand, shares of RIL settled for the day 1.36 percent lower at Rs 732.90. Kingfisher shares had gained considerably yesterday as well on speculations about RIL being interested in the struggling air carrier.
However, an RIL spokesperson today termed these reports as "baseless and speculative".
"There have been speculative media reports regarding Reliance Industries and its interest in a domestic airlines company. We reiterate that these reports are baseless and completely speculative in nature," the spokesperson said in a statement.
Shares of some other companies from Vijay Mallya-led UB group also gained substantially in a weak market on Wednesday.
McDowell Holdings surged 9.91 percent, Mangalore Chemicals and Fertilisers was up 1.39 percent, United Breweries Holdings went up by 1.20 percent and United Spirits rose 0.46 percent. However, United Breweries Ltd dropped 4.7 percent to close at Rs 513.45.
"Kingfisher Airlines rallied on reports that billionaire Mukesh Ambani's RIL is close to buying stake in the company and may also get UB Group's 30.44 percent stake in Mangalore Chemicals as part of the deal," Sharmila Joshi Head Equity Fairwealth Securities said.
Analysts said that expectations for an imminent government decision on allowing foreign airlines to acquire stake in domestic carriers also helped Kingfisher and other aviation stocks.
Jet Airways gained 5.3 percent, while the third listed airline Spicejet was up 5.45 percent at the BSE.