Two aviation stocks rose 1.52% to 4.52% at 12:51 IST on BSE, with both the stocks extending Wednesday's sharp rally triggered by state-run oil marketing companies on Tuesday, 1 April 2014, announcing reduction in the price of aviation turbine fuel.
SpiceJet (up 4.52% at Rs 18.05) and Jet Airways (India) (up 1.52% at Rs 283.10) edged higher.
Meanwhile, the S&P BSE Sensex was down 98.98 points or 0.44% at 22,452.51.
SpiceJet had outperformed the market over the past one month till 2 April 2014, advancing 31.83% compared with the Sensex's 6.78% rise. The scrip had, however, underperformed the market in past one quarter, sliding 9.34% as against Sensex's 7.96% rise.
Jet Airways (India) had outperformed the market over the past one month till 2 April 2014, advancing 28.68% compared with the Sensex's 6.78% rise. The scrip had, however, underperformed the market in past one quarter, sliding 1.83% as against Sensex's 7.96% rise.
The state-run oil marketing companies on Tuesday, 1 April 2014, announced reduction in the price of aviation turbine fuel (ATF), reflecting global trends. ATF price at Delhi was cut by Rs 3,025.34 per kl, or 4%, to Rs 71,800.21 per kl. In Mumbai, jet fuel costs Rs 74,105.16 per kl as against Rs 77,322.6 per kl previously. Rates at different airports vary because of difference in local Sales Tax or VAT.
Jet fuel constitutes over 40% of an airline's operating costs and the price cut will reduce the fuel cost of the cash-strapped carriers.
