Shares of three aviation firms rose by 2.26% to 4.58% at 11:00 IST on BSE as crude oil prices tumbled.
Meanwhile, the S&P BSE Sensex was up 135.25 points or 0.44% at 30,885.28.
Jet Airways (India) (up 3.87% to Rs 486.30), SpiceJet (up 4.58% to Rs 108.50) and InterGlobe Aviation (up 2.26% to Rs 1,097.95) gained.
Lower crude oil prices favourably affect aviation firms as jet fuel price, which typically constitute about 50% of airlines' operating costs is likely to get reduced as it is directly linked to international crude oil prices. Jet fuel prices are revised by the PSU OMCs at the end of every month based on international crude oil prices.
In the global commodities markets, crude oil prices saw a sharp drop as the Organization of the Petroleum Exporting Countries (OPEC) extended the production cut, but was silent on a long term plan. Brent for July 2017 settlement was down 26 cents at $51.20 a barrel. The contract fell $2.50 a barrel or 4.63% to settle at $51.46 a barrel in the previous trading session.
Opec decided yesterday, 25 May 2017, in Austria to extend cuts in oil output by nine months to March 2018, as the producer group battles a global glut of crude after seeing prices halve and revenues drop sharply in the past three years.
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