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Money Mar 30, 2012

JP Morgan downgrades Jet on high oil prices, weaker rupee

JP Morgan downgraded Jet Airways to 'underweight' from 'overweight' on Friday, saying high oil prices and the weak rupee were among the negative factors denting the outlook for the sector.

AFP

"We believe that near-term profitability for Indian operators is likely to remain under pressure," analysts at the investment bank wrote, adding domestic passenger traffic growth had likely slowed to 8-10 percent over the past three months from mid-to-high teen rates.

Despite the downgrade, Jet shares were up 1.4 percent in morning trade.

Meanwhile, the BSE Sensex and Nifty rose more than 1 percent in early trade, led by sectors such as banks and real estate, after the RBI's surprise bond purchases was seen helping to ease the tight liquidity that had been constraining the sector.

Reuters

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