Aviation stocks drop on higher crude oil prices
Three aviation stocks fell 0.85% to 1.65% at 11:10 IST on BSE as global crude oil prices rose yesterday, 6 June 2016.
SpiceJet (down 1.23% at Rs 64.05), Jet Airways (India) (down 1.65% at Rs 555.75) and InterGlobe Aviation (down 0.85% at Rs 1,008.20) edged lower.
Meanwhile, the S&P BSE Sensex was up 91.03 points or 0.34% at 26,868.48.
In global commodities markets, Brent for August settlement was currently down 11 cents at $50.44 a barrel. The contract had risen 91 cents or 1.83% to settle at $50.55 a barrel during the previous trading session amid ongoing supply disruptions in Canada and Nigeria.
Higher crude oil prices hurt aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
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