Shares of two airline companies rose by 2.2% to 5.67% at 12:40 IST on BSE after PSU OMCs cut jet fuel prices with effect from 1 August 2015.
PSU OMCs announced reduction in jet fuel prices after market hours on Friday, 31 July 2015.
Meanwhile, the S&P BSE Sensex was up 104.14 points or 0.37% at 28,218.70.
Among airline stocks, Jet Airways India (up 5.67%), and SpiceJet (up 2.2%) edged higher.
PSU OMCs 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. The revised prices took effect from 1 August 2015.
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, in the global commodities markets, Brent crude oil futures edged lower today, 3 August 2015 on worries of oversupply as the Organization of the Petroleum Exporting Countries (OPEC) pumped at record levels in July, while weak Chinese data stoked concerns about slower growth at the world's second largest oil consumer. Brent for September settlement was currently off 59 cents at $51.62 a barrel. The contract had fallen $1.10 a barrel or 2.06% to settle at $52.21 a barrel during the previous trading session on Friday, 31 July 2015.
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