Aviation stocks rise after cut in ATF price
Shares of two aviation firms rose by 4.45% to 4.61% at 9:50 IST on BSE after jet fuel rates were reduced by a steep 7.3% on Saturday, 1 November 2014, on back of falling international oil rates.
Jet Airways (India) (up 4.61%) and SpiceJet (up 4.45%), edged higher.
The S&P BSE Sensex was up 11.98 points, or 0.04% at 27,877.81.
Aviation turbine fuel (ATF), or jet fuel, rates were on Saturday, 1 November 2014, cut by a steep 7.3%, the fourth straight reduction in prices since August 2014 on back of falling international oil rates. The price of ATF at Delhi was cut by Rs 4,987.70 per kilolitre, or 7.3%, to Rs 62,537.93 per kl.
Prices of ATF constitutes approximately 50% of operating expenses of Indian airlines. State-run oil marketing companies -- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation -- revise jet fuel prices on the 1st and 16th of every month based on the average international crude price in the preceding fortnight.
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