Shares of two aviation companies rose by 6.66% to 14.86% at 13:02 IST on BSE after jet fuel prices were reduced by 4.1% from 1 December 2014 compared with 1 November 2014.
SpiceJet (up 14.86%) and Jet Airways (India) (up 6.66%), edged higher.
The S&P BSE Sensex was almost flat at 28,693.08.
The price of Aviation turbine fuel (ATF), or jet fuel, at Delhi was cut by Rs 2,594.93 per kilolitre (kl), or 4.15%, to Rs 59,943 per kilolitre on 1 December 2014, compared with Rs 62,537.93 per kl on 1 November 2014. ATF rates were reduced on back of falling international oil rates.
Prices of ATF constitutes approximately 50% of operating expenses of Indian airlines. State-run oil marketing companies -- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation -- revise jet fuel prices during the middle of the month and on the last day of the month based on the average imported oil price in the preceding fortnight.
Meanwhile, low-cost air carrier SpiceJet also rallied as institutional investor Rakesh Jhunjhunwala's Rare Enterprises acquired 75 lakh shares, or 14% stake, in SpiceJet at Rs 17.88 each on BSE on Friday, 28 November 2014.
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