MARKET EYE-Jet Airways, SpiceJet to post profits by Q3-Merrill

* Bank of America-Merrill Lynch reiterates its 'buy' ratings on Jet Airways

and SpiceJet .

* Indian airlines in the near-term will benefit from a stronger rupee

, the temporary shutdown of Kingfisher

,

capacity discipline, and improvements in utilisation and yield. * Merrill still expects Jet Airways and SpiceJet to post losses in the second quarter of fiscal 2012/13 but expects the third quarter to be profitable. * Jet Airways rallies 2.7 percent, SpiceJet ends flat.

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