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Aviation stocks rally on lower crude oil prices

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Capital Market
Last Updated : Apr 18 2016 | 11:47 AM IST

Three aviation stocks rose by 2.61% to 2.97% at 10:07 IST on BSE after crude oil prices declined in the global commodities market.

SpiceJet (up 2.97%), Jet Airways (India) (up 2.78%) and InterGlobe Aviation (up 2.61%), edged higher.

The S&P BSE Sensex was up 75.69 points, or 0.30% at 25,702.44.

Brent for June settlement was currently down $1.76 a barrel at $41.34 a barrel after talks over the weekend between the world's largest oil producing countries in Doha failed to produce a deal to freeze output aimed at boosting sagging crude prices. The contract had declined 74 cents or 1.68% to settle at $43.10 a barrel during the previous trading session.

Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.

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First Published: Apr 18 2016 | 10:08 AM IST

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