Shares of three aviation firms rose 0.71% to 2.56% at 12:53 IST on BSE on decline in crude oil prices
Jet Airways (India) (up 2.56%), SpiceJet (up 1.1%) and InterGlobe Aviation (up 0.71%) rose. Lower crude oil prices benefit aviation firms as jet fuel prices, which typically constitute about 50% of airlines' operating costs, are directly linked to international crude oil prices.
Meanwhile, the S&P BSE Sensex was down 348.50 or 1.37% at 25,051.15
Crude oil prices edged lower in the global commodities markets on mounting skepticism that key global crude producers would reach an agreement to freeze production at a meeting later this month. Brent for June settlement was currently down 26 cents at $37.43 a barrel. The contract had declined 98 cents or 2.53% to settle at $37.69 a barrel during the previous trading session. Saudi Arabia on Friday, 1 April 2016, said that it would freeze oil production only if Iran follows suit. Iran has ruled out freezing output until its production recovers to pre-sanction levels.
The world's major crude oil producers led by Russia and Saudi Arabia have convened a meeting on 17 April 2016 in Doha, Qatar to discuss measures to stabilise prices, including a proposal to freeze output.
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