Kingfisher Airlines (up 2.19%), Jet Airways (India) (up 2.17%) and SpiceJet (up 1.90%), edged higher.

The BSE Sensex was up 118.86 points or 0.70% to 17,068.69.

Kingfisher Airlines had underperformed the market over the past one month until 15 June 2012, rising 3.47% compared with the Sensex's 3.81% rise. The scrip had also underperformed the market in past one quarter, falling 34.40% as against 4.11% fall in the Sensex.

Jet Airways (India) had outperformed the market over the past one month until 15 June 2012, rising 27.66% compared with the Sensex's 3.81% rise. The scrip had also outperformed the market in past one quarter, gaining 11.94% as against 4.11% fall in the Sensex.

SpiceJet had outperformed the market over the past one month until 15 June 2012, rising 7.88% compared with the Sensex's 3.81% rise. The scrip had also outperformed the market in past one quarter, gaining 25.75% as against 4.11% fall in the Sensex.

The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 3,260 per kilo litre (kl), or 5%, to Rs 62,410 per kl. ATF typically makes up almost half of an airline's operating cost. State-run oil marketing companies revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.

Meanwhile, media reports suggest that the government on Sunday (17 June 2012) ruled out raising the 49% foreign direct investment (FDI) cap in the Indian aviation sector. India allows up to 49% FDI in domestic airlines but had been disallowing foreign airlines from investing in the sector. The government, however, is now planning to allow foreign airlines to pick up 49% stake in their Indian counterparts.

Separately, some media reports also suggested that international airlines have shown little enthusiasm over the government's plan to allow them to pick up 49% stake in their Indian counterparts. In spite of a high and sustained growth in passenger traffic, the financial strength of almost all Indian airlines is severely affected, leading foreign carriers to be disinclined to invest at the moment, reports added.