Shares of three aviation firms rose by 4.21 percent to 5.51 percent at 10:12 IST after jet fuel price was reduced by a steep 9.99 percent from 1 January 2016.
SpiceJet (up 5.5 percent), Jet Airways (India) (up 5 percent) and InterGlobe Aviation (up 4.2 percent), edged higher.
The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was reduced by Rs 4,428 per kilolitre, or 9.99 percent, to Rs 39,892.32 per kilo litre with effect from midnight of 31 December 2015 and 1 January 2016.
ATF constitutes approximately 50 percent of operating expenses of Indian airlines. State-run oil marketing companies -- Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation -- revise jet fuel prices on the last day of the month based on the average imported oil price during the month.
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