The government on September 26 introduced an import duty of 5 percent on aviation turbine fuel
Shares of aviation stocks tumbled in early trade after the government introduced an import duty of 5 percent on jet fuel or aviation turbine fuel (ATF).
Shares of Jet Airways hit a 52-week low of Rs 181.3. SpiceJet shares, too, touched a 52-week low of Rs 66.7.
Shares of InterGlobe Aviation also dropped to a 52-week low of Rs 818.6.
To contain current account deficit (CAD), the government hiked customs duty on 19 products, including ATF.
Airlines have been struggling with rising fuel prices and operations costs. The burden of the rising costs is likely to hurt customers through higher fares.For more market news, click hereGet access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.