Shares of aviation sector companies are under pressure in Tuesday’s trade as Russia has declared a prohibition on the export of aviation fuel, effective until November 30. While the unexpected ban has stirred debate over the availability and pricing of aviation turbine fuel, the Kremlin said the temporary trade restriction is an effort to protect domestic inventories amid declining refinery production and shifting dynamics across its energy network. Following this, airline stocks saw a sell-off. Shares of IndiGo and SpiceJet fell up to 2.5 per cent today.
SpiceJet Share Price
The stock opened in the red at Rs 12.28, down from the previous close of Rs 12.31, on the BSE. It fell further to touch the low of Rs 12, representing a dip of Rs 0.31 or 2.51 per cent from the last closing price. Last seen, the stock was trading at Rs 12.12 with a fall of Rs 0.19 or 1.54 per cent. The market cap of the company stood at Rs 1,849.63 crore.
Technically, the stock is trading lower than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages.
Indigo Share Price
InterGlobe Aviation shares started the trading session at 4,442.90, against the previous close of Rs 4,451.80. Amid profit booking, the stock fell to touch the intraday low of Rs 4,389.95, a dip of Rs 61.85.
Last seen, the stock was trading at Rs 4425.30 with a fall of Rs 26.50 pr 0.60 per cent and the market cap of the company stood at Rs 1,71,112.68 crore.
Will there be a direct impact on India?
According to reports, Russia is not a major player in the global jet fuel market, accounting for less than 2 per cent. Therefore, a significant impact on international fuel supplies is considered unlikely. Nevertheless, concerns about geopolitical risks remain in the market. Investors fear that rising global fuel prices could increase pressure on airline costs.
However, analysts believe the market will continue to closely monitor crude oil and aviation fuel prices in the coming days.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
