Airlines' stocks today witnessed brisk buying and rose by up to 12% on Bombay Stock Exchange (BSE) boosted by a fall in crude oil prices.
Shares of Jet Airways settled 11.87% higher at Rs 491.55 on BSE. In intra-day trade, the scrip shot up by 13.56% to Rs 499 a piece.
Similarly, low-fare airline Spicejet's shares surged by 10.72% to Rs 44.40, while Kingfisher Airlines jumped 10.46% to Rs 44.35 a piece.
"Decline in crude oil prices and short-covering are the main reasons behind the good performance by the aviation companies in today's trade," Geojit BNP Paribas Research head Alex Matthews said.
London Brent crude lost nearly 9% yesterday as well as today when it was down $2.6 to $108.22 a barrel. The price of US sweet, light crude oil this morning slid by 5.5% to $94.63 a barrel, before recovering during the day at above $97.
This in contrast to last few months when global crude oil prices had risen, fuelling inflation pressures.
Meanwhile, the BSE benchmark index Sensex today gained 308.23 points at 18,518.81 level.
