Aviation stocks take off

Spicejet gained over 5% intra day at Rs.83.15; Jet Airways was up over 2.5% at Rs.452.95 and Indigo was up almost 3% at Rs.897.55.

All the listed aviation stocks jumped up as crude oil prices are currently hovering around 3-month lows with investors waiting in the sidelines for key macro data which will show whether there is a supply overhang in the global market. Investors are worried that investors worried that swelling U.S. crude supplies would hinder OPEC's efforts to restrict output and reduce a global glut.

As per data in Reuters, S. West Texas Intermediate crude (WTI) was up 3 cents at $48.43 a barrel by 0329 GMT. The contract ended down 9 cents in the previous session after touching its lowest since the end of November at $47.90. Brent crude futures gained 7 cents to $51.42 a barrel, having settled down 2 cents on Monday after dipping as low as $50.85.

Obviously any fall in crude prices is good news for aviation stocks as it affects their margins directly in a positive way.