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Shares of aviation companies looked to shrug off concerns around 7 percent hike in aviation turbine fuel (ATF) or jet fuel.
InterGlobe Aviation, SpiceJet and Jet Airways were all trading around 2 percent higher.
Brent crude oil futures dipped for a second session on Monday, with prices coming under pressure from record U.S. output and expectations of higher OPEC supplies.
Meanwhile, ATF price was raised by Rs 4,688 per kilolitre, or 7.17 per cent, to Rs 70,028 per kl in Delhi, according to state-owned oil firms.
This is the second straight increase in jet fuel rates in as many months. ATF price was on May 1 raised by Rs 3,890 per kl (6.3 per cent) to Rs 61,450 per kl. The two hikes have taken jet fuel rates to their highest level since May 2014.
An increase of ATF prices is also not a good sign for travellers as carriers would look to pass this on in their travel fare as well.
State-owned fuel retailers revise rates of ATF, LPG and kerosene on 1st of every month based on average international rate and rupee-US dollar exchange rate in the preceding month.
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