Shares of InterGlobe Aviation, the parent company of IndiGo, jumped over 7% on Thursday, 5 November, emerging as the top gainer on the Nifty 50. The rally was driven by a sharp decline in global crude oil prices, which boosted sentiment towards airline stocks. The stock extended its winning streak to a fifth consecutive session, gaining 17.5% over the period.
Brent crude prices fell over 8% in the previous session to slip below $94 a barrel, following signals from the US and Iran that they were willing to pursue peace talks. Lower crude prices are positive for airlines, as aviation turbine fuel (ATF) accounts for a significant share of their operating costs.
Oil prices extended their decline for a fourth consecutive session on Thursday, amid expectations that the losses suffered by US President Donald Trump's Republican Party in the Congressional elections could reduce the risk of further escalation in the US-Israeli war on Iran.
According to a Reuters report, Brent crude futures fell 97 cents, or 1.03%, to $93.65 a barrel as of 0211 GMT, while US West Texas Intermediate (WTI) crude futures declined $1.14, or 1.29%, to $86.98 a barrel.
Both benchmarks had plunged more than 8% in the previous session, settling at their lowest levels since 31 August.