The drop in crude prices meant that the importing cost pressure on oil companies would reduce, and it would decrease the stress on aviation firms, which run on aviation fuel.This increased the scrip prices of major firms such as IOCL, ONGC, HPCL, and aviation sector firms such as Spice jet, Jet airways and Kingfisher airways.
At 11:38 A.M IST on Friday, on the Bombay Stock Exchange (BSE) stocks of IOCL, ONGC, HPCL, Jet Airways, Kingfisher and Spice Jet were up by 3.39 per cent, 0.78 per cent, 2.35 per cent, 4.11 per cent, 4.48 per centand 3.87 per cent, respectively.
The value of crude for June delivery was reported at $99.80 per barrel, down by $9.44 on the New York Mercantile Exchange. The drop was attributed to a massive selloff in the commodities market, propelled by concerns that the month old “bull-run" in raw-materials prices is coming to an end. Bloomberg"s “Fear and Greed" metricsent a sell signal for crude.