Shares in Jet Airways ended up 17.4 on Friday after traders said the Foreign Investment Promotion Board was likely to approve a planned stake sale to Etihad Airways.
Jet Airways and Etihad Airways officials were not immediately reachable for comment on the market speculation. A spokesman for the finance ministry, which oversees FIPB, declined to comment.
The FIPB, which clears foreign direct investment proposals, is scheduled to consider the Jet-Etihad deal at its meeting on Monday and traders said it may be approved.
The FIPB last month deferred a decision on Jet's plan to sell a 24 percent stake to Etihad.