Kingfisher Airlines stock today rose sharply by 20 per cent to the highest trading permissible limit for the day, despite reporting widening of net loss in the April-June quarter.

The airline scrip, which hit a record low of Rs 7.01 during early trade today, recouped all the losses and surged 20 per cent to Rs 8.88 on the BSE.

On the NSE, the scrip soared 19.59 per cent to Rs 8.85.

Kingfisher Airlines had on Saturday reported widening of net loss for the quarter ended June 30, 2012 to Rs 650.8 crore due to costs associated with non-operating aircraft.

The airline had posted a net loss of Rs 263.5 crore in the same period last year.

“Kingfisher continues to believe it will get capitalised and get on a path of sustained profitability. The airline is in discussions with several strategic and financial investors to bring fresh capital,” the company had said.

Kingfisher shares have fallen about 65 per cent so far this year.

Meanwhile, shares in all other UB Group companies also traded with strong gains.

United Breweries was trading 7.96 per cent higher, while United Breweries Holdings gained 9.82 per cent, United Spirits (7.68 per cent) and McDowell Holdings (5 per cent).

Surge in these stocks sharply outperformed the bearish broader market.

(This article was published on August 13, 2012)
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