Shares of two airline stocks rose by 0.23% to 0.73% at 12:35 IST on BSE after PSU OMCs cut jet fuel prices by 2.03% effective 1 April 2015.

Meanwhile, the BSE Sensex was up 3.31 points or 0.03% to 27,966.77.

Among airline stocks, Jet Airways (India) (up 0.73%) and SpiceJet (up 0.23%) gained.

Shares of Jet Airways (India) had outperformed the market over the past one month till 31 March 2015, gaining 10.34% compared with 4.78% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 27.04% as against Sensex's 1.67% rise.

Shares of SpiceJet had underperformed the market over the past one month till 31 March 2015, falling 5.86% compared with 4.78% decline in the Sensex. The scrip had however outperformed the market in past one quarter, rising 26.16% as against Sensex's 1.67% rise.

Meanwhile, Indian Oil Corporation announced during market hours cut in jet fuel prices by 2.03% to Rs 49,338 per kilolitre in Delhi on the back of falling global crude oil prices. The new price is effective from 1 April 2015. The price cut comes a month after 8.27% rise in aviation turbine fuel (ATF) or jet fuel. Last revision in prices was done on 1 March 2015.

Brent crude oil futures edged lower, extending previous trading session's decline. Brent for May settlement was off 16 cents at $54.95 a barrel. The contract had declined $1.18 a barrel or 2.09% to settle at $55.11 a barrel during previous trading session.

Jet fuel constitutes over 40% of an airline's operating costs. Prices of jet fuel are directly linked to crude oil prices.

PSU OMCs review jet fuel prices on the last day of the month based on the average imported oil price for the month.

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