Aviation stocks drop up to 4.5 pc on rise in crude oil prices

Press Trust of India  |  New Delhi 

Aviation stocks, led by SpiceJet, today tumbled up to 4.5 per cent due to rise in prices.

The scrip of dropped 4.55 per cent to close at Rs 141.60 and slipped 3.43 per cent to Rs 601.35 on


of InterGlobe Aviation too fell by 2.79 per cent to end at Rs 1,209.40.

prices climbed 3.5 per cent overnight to quote above USD 64 a barrel, the highest since early July 2015, as Saudi Arabia's crown prince cemented his power with an anti-graft crackdown which sparked fears of fresh geopolitical tensions and disruption in crude supplies.

Lower prices benefit aviation companies as jet fuel constitutes over 40 per cent of an airlines operating costs.

"Political disturbance in Saudi is triggering high volatility in the crude prices, which is negative for leading to depreciation in INR," said Vinod Nair, Head of Research, Services Ltd.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, November 07 2017. 19:28 IST