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SpiceJet says it is too early to cut fuel fares; BSE Sensex testing 14300 levels

September 1st, 2008

Monday, September 01, 2008 12:31:02 PM IST

SpiceJet is in news that it has decided not to cut domestic air fares despite the recent slash of aviation fuel prices by 16%. NSE Nifty is at 4293.7 down 1.5% and BSE Sensex managing 14300 levels and is down 1.76%

SpiceJet is in news that it has decided not to cut domestic air fares despite the recent slash of aviation fuel prices by 16%. An official from the airliner, speaking to a Business press was quoted saying that it takes about 2 - 3 months for the prices to stabilise. The announcement came close in heels after Indian Oil Limited (IOL) has announced it is reducing the domestic jet fuel rates by about 16% effective from Monday with the International Crude prices cooling a bit.

SpiceJet is trading at 27.90 levels up 2.2%. Its peers Jet Airways is at 492.9 levels and Deccan Aviation is at 83.65. The three aviation stocks are in the green today with Deccan up by over 5.4% at the moment.

The markets are in the red since the morning and are going in a range bound manner during the last hour of trade. The CNX IT is down by 0.53% while Bank Nifty is down 2.35%. The broder CNX 500 is down 1.34%.

Top losers on the Nifty so far include Maruti (down over 4%), Reliance Infra, Tata Steel, Reliance Communications, Bharti Airtel, SAIL (all over over 3%), ICICI Bank, BPCL, SBI and Hindustan Unileaver (all over over 2%)

Gainers list on the Nifty includes HCL Tech (up 3%), Hero Honda (up 2%), Sun Pharma (up over 1%), Dr. Reddy, Zee Limited, Cairn, RPL and Reliance (all marginally in the green)

All sectoral indices on the BSE are now in the red with inflationary-sectors Banks and Power down by over 2%. Metal and FMCG too slipped a bit more now.

1 U.S. dollar = 43.7407 Indian Rupees
1 U.S. dollar = 108.2368 Japanese Yens
1 U.S. dollar = 0.6838 Euros
1 Ounce Gold = $831.30
1 Barrel Crude Oil = $116.41

Entry Filed under: Equity Markets, Aviation