Aviation stocks, led by SpiceJet, today rose as much as 3 per cent after oil companies slashed air turbine fuel (ATF) by a steep 12 per cent.
Shares of SpiceJet rose by 3.09 per cent to settle at Rs 90 on BSE.
Among other listed aviation stocks, InterGlobe Aviation went up by 1.12 per cent and Jet Airways gained 0.77 per cent.
During the day, SpiceJet climbed 7.9 per cent, Jet gained 6.2 per cent and InterGlobe Aviation surged 5 per cent.
"ATF is one of the biggest cost in airline operations and thus a cut in ATF prices lifted market sentiments towards aviation stocks- SpiceJet, Jet Airways and Indigo to a great extent," Bonanza Portfolio Ltd, Head: Wealth Management & Financial Planning, Achin Goel said.
ATF price in Delhi was reduced by Rs 4,765.5 per kilolitre (kl), or 11.9 per cent, to Rs 35,126.82 per kl, oil companies said today.
Jet fuel constitutes over 40 per cent of an airline's operating cost and the price cut will lighten the financial burden on cash-strapped carriers.
