Shares of three aviation firms rose by 2.24% to 3.34% at 12:05 IST on BSE after crude oil prices further extended losses.
Meanwhile, the S&P BSE Sensex was down 153.63 points or 0.62% at 24,671.41.
Jet Airways (India) (up 3.34%), InterGlobe Aviation (up 2.24%) and SpiceJet (up 2.42%) gained.
Brent crude oil futures edged lower on a stronger dollar and worries over Chinese demand. Brent for February settlement was currently down 82 cents at $30.73 a barrel. The contract had lost $2 a barrel or 5.96% to settle at $31.55 a barrel during the previous trading session.
In the foreign exchange market, the rupee edged lower against the dollar. The partially convertible rupee was hovering at 66.87, compared with its close of 66.81 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.
However, a weakness in rupee against the dollar will raise routine expenses for carriers. A weak rupee impacts aviation sector adversely as almost a third of operational expenses of aviation firms are denominated in dollars. Among the payments made in dollars include, rentals of leased aircraft, maintenance, spare parts and salary paid out to foreign crew.
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