Aviation stocks extended their rally for the third consecutive trading session on Friday after the government slashed excise duty on jet fuel to 11% from 14%, effective October 11. Moreover, these shares were supported by lower international crude prices.
Following this news, aviation stocks rallied with SpiceJet
currently trading at Rs73.35 up 4.41%, Interglobe Aviation
trading at Rs796.85 up 4.42%, and Jet Airways (India)
is currently trading at Rs199.50 up 4.31%.
Jet fuel prices, which have crawled the north towards its higher level since January 2014, were supported by rising oil prices. Now, the declining global oil prices fuelled the rally of aviation stocks.
Oil prices dropped on an unexpected growth in US crude oil inventories reported by the US Energy Information Administration (EIA) and easing threat of Hurricane Michael.
Meanwhile, SpiceJet inducted its first Boeing 737 MAX airplane. The company has inked a $22bn agreement with Boeing for up to 205 aircraft in 2017.