Shares of aviation companies took off on Wednesday as investors cheered the fall in crude prices.
Stocks in this sector usually gain due to a decline in crude oil prices as profitability prospects improve for such companies due to reduced input costs.
Jet Airways, SpiceJet and InterGlobe Aviation, the operator of IndiGo, gained between 2 and 4 percent intraday on the back of this development.
Oil prices held around multi-month lows in early Asian trading on Wednesday as investors discounted evidence of strong compliance by OPEC and non-OPEC oil producers with a deal to cut global output.
Brent was down 6 cents at $45.96 barrel at 0035 GMT. The global benchmark ended down 89 cents, or 1.9 percent, on Tuesday at its lowest settlement since November.
U.S. crude futures for August were trading down 3 cents at $43.48. The July contract, which expired on Tuesday, settled down than 2 percent at its lowest since September.
The Organization of the Petroleum Exporting Countries and other producers agreed to cut output by 1.8 million barrels per day (bpd) for six months from January and compliance with the agreement has reached more than 100 percent.
"The lack of a positive response in oil prices clearly suggests market participants are not convinced that the OPEC's efforts will help shore up prices in a meaningful way in the short-term as shale supply continues to rise in the U.S.," said Fawad Razaqzada, market analyst at futures brokerage Forex.com.
At 11:30 hrs, Interglobe Aviation was quoting at Rs 1,251.00, up Rs 20.05, or 1.63 percent on the BSE. Meanwhile, Jet Airways was quoting at Rs 563.55, up Rs 14.35, or 2.61 percent. Simultaneously, SpiceJet was quoting at Rs 130.00, up Rs 3.40, or 2.69 percent.
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