SpiceJet shares bounce back amid value-buying; settle over 2% higher

Shares of SpiceJet bounced back on Wednesday, rising more than 2 per cent amid value-buying at lower levels in tandem with a positive trend in the equity market.

Since Monday, the scrip has been on a downward trend amid multiple instances of its planes suffering technical glitches in recent weeks.

The scrip, which tanked 7 per cent to hit its 52-week low of Rs 35 during the day on the BSE, later recovered all the lost ground and climbed 2.12 per cent to settle at Rs 38.45 apiece.

It jumped 6.24 per cent to Rs 40 during the trade on Wednesday after opening at Rs 37.10 apiece.

The broader market was in the positive territory and the benchmark Sensex jumped 616.62 points or 1.16 per cent to settle at 53,750.97.

On Tuesday, the company's stock fell by 2.33 per cent to close at Rs 37.65 on a day when its Dubai-bound plane was diverted to Karachi due to malfunctioning of the fuel indicator.

Aviation regulator DGCA issued a show-cause notice to SpiceJet on Wednesday following eight technical malfunction incidents involving the airline's planes in the last 18 days.

SpiceJet's Delhi-Dubai flight suffered a mid-air malfunction in its fuel indicator on Tuesday and was diverted to Karachi and cracks developed on the windshield of another plane of the budget carrier at a height of 23,000 feet forcing a priority landing in Mumbai.

SpiceJet has failed to "establish safe, efficient and reliable air services" under the terms of Rule 134 and Schedule XI of the Aircraft Rules, 1937, the notice issued by the Directorate General of Civil Aviation (DGCA) stated.

On Tuesday, a SpiceJet freighter aircraft, which was heading to Chongqing in China, returned to Kolkata as the pilots realised after the take-off that its weather radar was not working.