Airline stocks decline on jet fuel price hike ahead of D-day

While the market opened flat on this D-day, the airline stocks plunged as Indian Oil Corporation (IOC) has announced to increase the jet fuel price by 2.9 per cent ahead of Budget speech of Union Finance Minister Arun Jaitley.  

The airlines industry is one the important constituent of the Indian economy. The announcement on service tax closer to potential GST will also be an important update that may be announced by our Finance Minister on Wednesday. 

On the other hand, with increased demand in airlines, any support from the government will boost the movement of Airlines stocks. The major companies in this sector like Jet aiways, Interglobe Aviation, Spice jet are down about 2-8 per cent.

At 10:20 am, stocks in this segment are trading at:

Jet Airways   Rs 389.50 (-3.34 per cent)
Spicejet   Rs  63.70  (-1.77 per cent )
Interglobe Aviation  Rs  831.75 (-7.89 per cent)

The stocks have opened negative on Wednesday, would see more movement as the day reaches towards the end of budget speech. Traders should be very careful while trading on the Budget day.