Rising crude oil prices triggered fresh concerns for aviation stocks with shares of all three main airline companies - IndiGo, Jet Airways and SpiceJet - extending losses on Tuesday.
Concerns stem from the fact that higher crude oil prices will eat into already thin margins and profitability of airline companies.
Brent crude oil prices surged over 3 percent overnight as investors anticipate supply crunch caused by the upcoming US sanctions against Iran and the Opec's non-commitment to raise output.
Brent crude oil futures nudged up 0.1 percent to $81.28 a barrel after surging more than 3 percent overnight to $81.48, highest since November 2014.
Indian airline companies are prone to volatility in crude oil prices as jet fuel costs account for more than a third of their expenditure.
Shares of InterGlobe Aviation and Jet Airways India declined over 2.2 percent each, while those of SpiceJet fell over 5 percent.
Meanwhile, benchmark equity indexes recouped losses from early trade as the Indian rupee mildly recovered against the dollar. The NSE Nifty50 traded at 10,956.10, still down by 11.30 points, or 0.10 percent, while the BSE Sensex was trading at 36,267.04, lower by 37.98 points, or 0.10 percent at 10.05 am.
(With inputs from agencies)
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