Airlines, oil marketing cos rally on decline in crude oil prices

Shares of airline firms and oil marketing companies Wednesday rose as much as 4.33 per cent after a slump in global crude oil prices.

The stock of SpiceJet jumped 4.33 per cent to settle at Rs 84.40 on the BSE. In the intra-day trade, the scrip rose 6.67 per cent to Rs 86.30.

InterGlobe Aviation, which runs Indigo airline, surged as much as 4.05 per cent to settle at Rs 1,152.10. Jet Airways closed at Rs 245.80, up 0.1 per cent from the previous close.

Besides, the scrip of Hindustan Petroleum Corporation Ltd (HPCL) grew 2.16 per cent to close at Rs 236.25, Bharat Petroleum Corporation Ltd (BPCL) rose 2.53 per cent to Rs 362.15 and Indian Oil Corporation (IOC) climbed 1 per cent to Rs 146.05.

The gain is in line with the BSE's Sensex gaining 0.38 per cent to close at 36,484.33 points.

According to marketmen, the surge in the counters of airline firms and oil marketing companies could be attributed to persistent fall in crude oil prices, which dropped to over 15-month low. The lower crude oil prices suggests profitability for such firms.

On Tuesday, brent crude, the international benchmark, dropped to USD 57.98 per barrel, a fall 2.73 per cent.