Airlines Biggest Gainers As Crude Tumbles
Shares of airlines gained the most in the last seven weeks as the crude tumbled.
The three listed Indian carriers rose 32-81 percent since Oct. 3 as the oil retreated from its highest level in four years, plunging 25 percent. To be sure, Jet Airways also surged because of Tata Group’s interest in the struggling carrier.
By contrast, Jet Airways Ltd., SpiceJet Ltd. and InterGlobe Aviation Ltd., the parent of IndiGo, had fallen 79, 57 and 35 percent, respectively, year-to-date till Oct. 3. Fuel contributes more than a third of an airline’s operating costs.
Makers of tyres and paints, which use crude and its derivatives as raw materials, also gained as oil fell. The only exception being Kansai Nerolac Ltd. whose shares fell 6 percent since Oct. 3.
State-run fuel retailers were the worst hit with shares falling as much as 13 percent.