Shares of three aviation firms gained 4.09% to 6.23% at 15:03 IST on BSE on sharp decline in crude oil prices on Friday, 1 April 2016.
SpiceJet (up 4.09%), Jet Airways (India) (up 4.32%) and InterGlobe Aviation (up 6.23%) surged. 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 up 113.54 points or 0.45% at 25,383.18
Brent for June settlement was currently up 6 cents at $38.73 a barrel. The contract had fallen $1.66 a barrel or 4.11% to settle at $38.67 a barrel during the previous trading session on on Friday, 1 April 2016 after a media report suggested that Iran would continue increasing its oil production and exports until it reaches the market position it enjoyed before the imposition of sanctions. 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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