Two airline stocks rose 0.45% to 2.5% at 10:05 IST on BSE on expectations of further fall in jet fuel prices after recent sharp drop in global crude oil prices.
Meanwhile, the S&P BSE Sensex was up 102.98 points or 0.37% at 25,844.54.
Among airline stocks, Jet Airways India (up 2.5%), and SpiceJet (up 0.45%) edged higher.
Shares of Jet Airways India had outperformed the market over the past one month till 24 August 2015, sliding 6.62% compared with 8.43% fall in the Sensex. The stock, however, underperformed the market in past one quarter, declining 18.7% as against Sensex's 7.93% decline.
Shares of SpiceJet had outperformed the market over the past one month till 24 August 2015, sliding 2.51% compared with 8.43% fall in the Sensex. The stock had also outperformed the market in past one quarter, gaining 31.27% as against Sensex's 7.93% decline.
In the global commodities markets, Brent crude oil futures recovered somewhat today, 25 August 2015 from sharp falls in the previous session but they remained at 2009 levels as Chinese stocks kept tumbling, triggering fears of an economic tailspin in the region. Brent for October settlement was currently up 61 cents a barrel at $43.30 a barrel. The contract had fallen $2.77 a barrel or 6.09% to settle at $42.69 a barrel during the previous trading session.
Jet fuel constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices. PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price in the preceding fortnight.
Meanwhile, PSU OMCs had in last revision on 31 July 2015 announced reduction in jet fuel prices by Rs 4,860 per kilolitre or 9.47% at Rs 46,407.36 per kilolitre in Delhi, with corresponding changes in other states.
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