Kingfisher airlinesShares of Vijay Mallya-promoted Kingfisher Airlineswere down 1.6% to Rs 39, as the debt-ridden carrier struggles to pay its fuel bills. On Monday evening,Hindustan Petroleum Corporation refused to refuel Kingfisher planes for non-payment of dues, leading to a dozen flights being grounded. Kingfisher owns the state-owned oil marketing company around Rs 650 crore.A Kingfisher spokesperson told moneycontrol.com that all domestic flights were flying on schedule today.
On the reason for the stock not falling sharply, Ajay Parmar, head of institutional research, Emkay Global Financial Services told moneycontrol.com that the stock had been ignored in the recent market rallies, and so was not over-owned by investors.
“Besides, there is a curb on Kingfisher futures. So traders cannot short sell it,” he said.
A future being placed in the ‘curb list’ of the NSE means that traders cannot initiate any fresh position (buy or sell) in it. Of the 121 trading days so far this year, KFA has been in the curb list for 57 trading days.
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