Shares of three airline companies rose 0.19% to 0.64% at 12:25 IST on BSE after reduction in aviation turbine fuel prices.
Jet Airways India (up 0.98%), SpiceJet (up 0.68%) and InterGlobe Aviation (up 0.36%), edged higher.
The S&P BSE Sensex was down 3.65 points, or 0.01% at 28,448.52.
Aviation turbine fuel (ATF) price was decreased by 3.8% to Rs 45,411.18 per kilo litre in Delhi, with corresponding price revision in other States. The price change was applicable from midnight of 31 August 2016. ATF rates vary at different airports because of differential local sales tax or value-added tax (VAT).
This is second consecutive ATF price cut. Earlier on 1 August 2016, ATF prices were reduced by 4.22% in Delhi.
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 last day of the month based on the average imported oil price in that month.
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