SpiceJet gains 2.4 percent on hopes the carrier would also attract foreign investment after a senior government source told reporters rival Jet Airways was the front-runner to win an investment from Etihad Airways.

The Gulf carrier could pay up to 15-18 billion rupees for a 24 percent stake in Jet, the official said, valuing Jet at 725 to 870 rupees per share, which would mark a premium of 25 to 50 percent on Wednesday's close, according to Reuters calculations.

Shares in Jet Airways rose as much as 6 percent.