Shares of aviation companies such as InterGlobe Aviation – which runs budget carrier IndiGo, SpiceJet and Jet Airways fell sharply in trades on Thursday.
Traders attributed the selloff in carriers to the rebound seen in crude oil prices. In global markets, crude oil prices have rebounded above $30/barrel after a long time.
According to aviation experts, aviation turbine fuel (ATF) contributes around 40-50 per cent of the operating cost of airline companies in India.
Shares of SpiceJet crashed 13 per cent to hit low of Rs 72, while InterGlobe Aviation shares tumbled 7 per cent to Rs 781. Jet Airways shares fell 8.3 per cent to Rs 514.
Over the last few months, shares of SpiceJet and Jet Airways have outperformed the benchmark indices on the back of falling crude oil prices.
SpiceJet had rallied 66 per cent, while Jet Airways had surged 21 per cent in in last three months.