Aviation stocks such as Jet Airways, SpiceJet, InterGlobe Aviation on Wednesday surged up to 5 per cent on reports that Union Cabinet has approved the proposed aviation policy and replaced 5/20 rule with 0/20 rule.
The government also approved capping of airfares at Rs 1,200 for a 30 minute flights and Rs 2500 for an hour-long flight, the media report said.
Earlier, for any airline company it was compulsory to fly in India for five years before going abroad.
Shares of SpiceJet were seen trading at Rs 66.80, higher by 4.13 per cent on BSE at 1.27 pm IST. It touched an intra-day high of Rs 67.50 during the trade.
InterGlobe Aviation shares were trading at Rs 1017, higher by 2.86 per cent on BSE. The stock touched an intra-day high of Rs 1032 during the trade.
Jet Airways was trading 1.54 per cent up at Rs 568 and has touched a high of Rs 576 during the trade.