Aviation stocks, led by SpiceJet, today tumbled up to 4.5 per cent due to rise in crude oil prices.
The scrip of SpiceJet dropped 4.55 per cent to close at Rs 141.60 and Jet Airways slipped 3.43 per cent to Rs 601.35 on BSE.
Shares of InterGlobe Aviation too fell by 2.79 per cent to end at Rs 1,209.40.
Oil prices climbed 3.5 per cent overnight to quote above USD 64 a barrel, the highest since early July 2015, as Saudi Arabia's crown prince cemented his power with an anti-graft crackdown which sparked fears of fresh geopolitical tensions and disruption in crude supplies.
Lower crude oil prices benefit aviation companies as jet fuel constitutes over 40 per cent of an airlines operating costs.
"Political disturbance in Saudi is triggering high volatility in the crude prices, which is negative for India leading to depreciation in INR," said Vinod Nair, Head of Research, Geojit Financial Services Ltd.
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