Mumbai: Shares of Jet Airways surged over 6 percent Tuesday on hopes that fall in international crude oil prices will lower operational expenses and boost profits.
Jet Airways' scrip gained 6.32 percent to settle at Rs 428.10 on the BSE. During the day, it rose by 8.92 percent to Rs 438.60 -- its 52-week high.
Shares of Jet, in which Gulf carrier Etihad holds 24 percent stake, ended 5.68 percent higher at Rs 426.35 on the NSE.
Brent crude oil price hit a fresh five-year low today to USD 66 a barrel.
Jet fuel accounts for more than 40 percent of an airline's operating costs and falling prices will ease the financial burden of carriers.
Analysts said that the stock rallied on hopes that fall in crude oil prices would help the company improve its profitability by reducing operating costs.
Meanwhile, the broader market was weak with the benchmark Sensex falling by 322.39 points at 27,797.01.
