Aviation stocks surged sharply with IndiGo leading gains, as falling crude oil prices following the US-Iran ceasefire improved cost outlook and boosted investor sentiment. The stock of SpiceJet also jumped 4.99 per cent to reach its upper circuit limit of Rs 11.14
-1775629963154_d.png "Aviation stocks fly high; IndiGo jumps nearly 11 percent")
Representational image/pixabay
Aviation stocks zoomed on Wednesday morning trade following a sharp decline in crude oil prices after the US and Iran announced a two-week ceasefire.
Easing of geopolitical stress led to a sharp fall in Brent crude oil prices, which tumbled 13 per cent to USD 94.94 per barrel.
InterGlobe Aviation, the parent firm of IndiGo, zoomed 10.98 per cent to Rs 4,737.40 on the BSE.
The stock of SpiceJet also jumped 4.99 per cent to reach its upper circuit limit of Rs 11.14.
Stock markets also turned buoyant following the ceasefire announcement. The 30-share BSE Sensex jumped 2,839.53 points or 3.80 per cent to 77,456.11 in morning trade. The 50-share NSE Nifty surged 837.6 points or 3.62 per cent to 23,961.25.
"The announcement of a temporary two-week ceasefire between the US and Iran has significantly improved global risk appetite, easing concerns around prolonged conflict and potential supply disruptions," Ponmudi R, CEO of Enrich Money, an online trading and wealth tech firm, said.
Asian equities are trading higher, while a sharp pullback in crude oil prices-now below the USD 100 mark and trending toward the USD 91.96 range-offers a meaningful tailwind for India, he said.
"Lower oil prices help ease inflationary pressures, support the current account, and improve the broader macro outlook," Ponmudi added.
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