Aviation stocks jumps after sharp fall in crude oil prices

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Stock News TodayThe aviation sector stocks have embarked upon an upward rally in Friday’s trading session. The aviation stocks registered sudden increase in volumes in the mid noon hours.

Jet Airways went up 3.87% to Rs 486.30, SpiceJet jumped 4.58% to Rs 108.50) and InterGlobe Aviation gained 2.26% to Rs 1,097.95.

The aviation turbine fuel has been in falling trend for past one month, which is based on the oil prices and foreign exchange rates of the previous month.

However, lower crude oil prices favorably affect aviation companies as jet fuel price, which constitute about 50 percent of airlines’ operating costs is likely to get reduced since it is directly connected to international crude oil prices.

In the global commodities markets, the price of crude oil witnessed a sharp drop as the OPEC extended the production cut, but was silent on a long term plan.

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