Shares of SpiceJet Ltd. fell the most in three weeks after India's aviation regulator extended the cap on its operations till Oct. 29.
The Directorate General of Civil Aviation had on July 27 directed the budget carrier to operate at 50% capacity after a series of in-flight incidents. It had put the initial cap at eight weeks, which means the cap was to be lifted on Wednesday, Sept. 21.
Now, SpiceJet will remain under "enhanced surveillance" for another five weeks.
On Thursday, shares of the Ajay Singh-led airline fell 5.5% -- the most since Sept. 1. Trading volume was more than twice the 30-day average. Of the 10 analysts tracking the company, two maintain a 'buy', and four each suggest a 'hold' and a 'sell', according to Bloomberg data. The 12-month consensus price target implies a 4.5% downside.
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