Shares of three airlines companies shed by 0.59% to 1.06% at 15:15 IST on BSE after crude oil prices jumped in the previous session.
Meanwhile, the S&P BSE Sensex was down 37.87 points or 0.13% at 28,085.57.
Jet Airways (India) (down 1.06%), SpiceJet (down 0.59%) and InterGlobe Aviation (down 0.6%) fell. Higher crude oil prices adversely affect aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
In the global commodities markets, the crude oil prices edged lower after the previous sessions' gains triggered by expectations of revived talks by key exporters to freeze output levels. Brent for October settlement was currently down 23 cents at $50.66 a barrel. The contract had risen $1.04 a barrel or 2.08% to settle at $50.89 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 67.04, compared with its close of 66.81 during the previous trading session.
A weakness in rupee against the dollar will raise routine expenses for carriers. A weak rupee impacts aviation sector adversely as almost a third of operational expenses of aviation firms are denominated in dollars. Among the payments made in dollars include, rentals of leased aircraft, maintenance, spare parts and salary paid out to foreign crew.
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