Aviation stocks got a fillip on Thursday morning, with shares of Spicejet, Jet Airways, IndiGo gaining as much as 8% in the morning trade, after the government announced excise duty cut on turbine fuel yesterday. The Narendra Modi government announced excise duty cut on Aviation Turbine Fuel (ATF) from 14% to 11%, providing relief to the aviation industry from higher fuel prices. Reacting to the news aviation stocks surged, with Interglobe Aviation shares zooming more than 10.5% to hit an intraday high of Rs 801.65. Shares of domestic low-cost carrier Spicejet gained more than 6% to Rs 71.30. Jet Airways shares zoomed nearly 8% to Rs 198.2 this morning.
Aviation companies have also been hit by the double whammy of rising crude oil prices and the falling rupee. The domestic currency rupee shed 26 paise to slump to a record of of 74.48 against the dollar this morning. While aviation stocks rallied in trade, the broader stocks markets remained under heightened pressure as the 30-share Sensex fell more than 1,000 points at open tracking negative global cues.
Notably, oil and gas stocks were trading with marginal gains, as oil prices fell to two-week lows as they extended big losses from the previous session amid a rout in global stock markets, with oil also taking a hit from an industry report showing U.S. crude inventories rose more than expected, said a Reuters report. ONGC was the only Sensex gainer, trading 0.30% higher.