Stocks of aviation companies rose on Friday after oil prices dropped as much as a further 3 per cent on Friday after concerns about global oversupply wiped out all of the price gains since OPEC’s move to cut output. Airline stocks rose as jet fuel is the biggest cost for low-budget carriers.
At 11.20 am, stocks of InterGlobe Aviation were trading 2.62 per cent up at Rs 1137.10, Jet Airways was up 4.08 per cent at Rs 544.40, while SpiceJet was up 6.45 per cent at Rs 119.70. The BSE Sensex was up 134.69 points at 29,991.52 during the same time. Jet Airways shares opened at Rs 526.70 and touched a high and low of Rs 552 and Rs 526.70. InterGlobe Aviation shares opened at Rs 1111 and touched a high and low of Rs 1151.85 and Rs 1111, respectively. SpiceJet shares opened at Rs 114.25 and touched a high and low of Rs 121.85 and Rs 113.90, respectively. Later, the stock price of InterGlobe Aviation, Jet Airways and SpiceJet ended the day 0.75 per cent, 2.01 per cent and 4.49 per cent up.
US West Texas Intermediate (WTI) crude oil futures were trading at $44.14 per barrel at 0335 GMT, down $1.39 or 3 per cent, after a more than 4 per cent drop the previous session. WTI futures have fallen below prices when the OPEC cuts were agreed in late November and are at their lowest since Nov. 14.
Brent crude futures, the international benchmark for oil prices, were at $47.05 per barrel at 0335 GMT, down $1.33 or 2.8 percent from their last close. Brent tumbled back below $50 in the previous session and is its lowest since Jan. 14. Brent and WTI are on track for their largest two-day percentage loss since February 2016.