Aviation stocks rallied on Tuesday, with share prices of IndiGo, SpiceJet, Jet Airways zooming up to 11% intraday on the back of a rising rupee and falling global crude oil prices.
Aviation stocks rallied on Tuesday, with share prices of IndiGo, SpiceJet, Jet Airways zooming up to 11% intraday on the back of a rising rupee and falling global crude oil prices. Notably, shares of Interglobe Aviation, which runs the IndiGo airline rose by more than 7% to hit an intra-day high of Rs 875.85 on BSE this afternoon. Spicejet shares rallied by more than 6% to hit day’s high of Rs 74.40. Jet Airways shares zoomed nearly 10.5% to hit the day’s high at Rs 216.65. The rally in the aviation shares came on the back of steady gains in rupee and falling crude oil prices.
Last week, aviation stocks got a fillip after the government announced excise duty cut on turbine fuel. The Narendra Modi government announced excise duty cut on Aviation Turbine Fuel (ATF) from 14% to 11%, providing relief to the aviation industry reeling under the burden of higher fuel prices. Interestingly, ace investor Rakesh Jhunjhunwala has bought into the shares of SpiceJet. His stake in the low-cost airline has now gone up to 1.25%, or 75 lakh shares.
The rally in the aviation pack came on the back of rising rupee and falling crude oil prices. Meanwhile, the domestic currency rupee gained more than 28 paise against the dollar to hit intraday high of 73.625, even as brent crude slipped below the 80 per barrel mark. Oil prices fell on Tuesday on evidence of higher U.S. oil production and increasing U.S. crude inventories, but reports of a fall in Iranian oil exports helped limit losses. Brent crude was down 50 cents a barrel at $80.28 by 0900 GMT. U.S. light crude was 50 cents lower at $71.28, Reuters reported.