Airline shares, oil PSUs gain after global crude oil prices ease

Aviation and oil PSUs gained after global crude oil prices eased

Shares of aviation and state-owned oil marketing companies have firmed after global crude oil prices eased after talks between the Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC producers to freeze oil output remained inconclusive.

In the global markets, both Brent and Nymex crude oil futures were down nearly 2% at 41.29 and 38.55, respectively, on failure of talks between OPEC and non-OPEC producers to freeze oil output.

Jet Airways was down 2.7% at Rs 642, SpiceJet gained 3% to Rs 73 and Interglobe Aviation which operates the Indigo airline was up 2% at Rs 1,047.

Aviation fuel constitutes around 40% of an airline's operating cost and the reduction in prices will boost margins of airlines.

State-owned oil marketing companies firmed up lower crude oil prices would help improve margins of refiners.

Hindustan Petroleum was up 1.7% at Rs 864, Bharat Petroleum was up 2% at Rs 944 and IOC was up 1.6% at Rs 423.