Mumbai: Strong market speculation that low-cost carrier, SpiceJet, was in merger talks with another Delhi-based low cost carrier IndiGo, saw the shares of SpiceJet shooting up 9.5 per cent at the Bombay Stock Exchange.

The exchange also reported bulk deals of at least 8.26 million shares, which marked a strong contrast  against the two-week average volume of 2.8 million.

SpiceJet, however, denied any such move, according to media reports, which quoted airline officials as saying that the airline was not in talks for merger with any other low-cost carrier.

The buzz on the market however was that management teams of both the airlines had held a meeting in Mumbai.