Mumbai: Aviation stocks soared by up to 8.5% on Friday as state-owned oil companies cut jet fuel prices by 2%.
Airline scrips witnessed impressive buying despite weak markets, with the BSE 30-scrip benchmark Sensex trading 43.06 points down at 16,175.47 at 11:00am.
Shares of Kingfisher surged 8.57% to Rs 11.40 on the BSE, while Spicejet gained 4.26% to Rs 29.35. Similarly, Jet Airways climbed 2.82% to Rs 323.85.
The stocks rallied following the price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 1,376.81 per kl, or 2%, to Rs 65,670.14 per kl.
Jet fuel constitutes over 40% of an airline’s operating cost and the reduction in prices will ease the burden of the cash-strapped airlines.