Shares of airline companies - Jet Airways, IndiGo, SpiceJet - plunged to their 52-week lows on Thursday after the Narendra Modi government levied a custom duty of 5 percent on aviation turbine fuel (ATF) on late Wednesday.
Shares of Jet Airways fell 5 percent to a 52-week low of Rs 181.30, InterGlobe Aviation, the owner and operator of Indigo Airlines, also hit a 52-week low of Rs 818. The stock traded at Rs 840.95, down by 1.44 percent, at 10.26 am.
BSE-listed SpiceJet shares traded lower by 2.31 percent at Rs 67.80. After opening at the day's high of Rs 68.40, the stock slipped to Rs 66.70, its 52-week low.
Shares reacted negatively as the higher cost of the ATF, which was till now exempted from customs duty, will further raise operating costs, inflicting more pain on their profit margins amid competition. Aviation stocks are already under pressure with the crude prices going up.
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