Stock markets in India are trading range-bound in the afternoon session. Among the sectoral indices, realty and healthcare stocks are witnessing maximum selling pressure. While, energy stocks and PSU stocks are trading in green.
The BSE Sensex is trading higher by 76 points (up 0.2%), and the NSE Nifty is trading higher by 26 points (up 0.2%). Meanwhile, the BSE Mid Cap index and the BSE Small Cap index are trading down by 0.7% & 0.4% respectively. The rupee is trading at 72.59 to the US$.
In the news from the aviation sector. As per the International Air Transport Association (IATA), Indian airlines achieved their 49th consecutive month of double-digit traffic growth. The growth came on the back of a rise in demand to 19.8% in September.
According to the data, India’s domestic air passenger volume measured in revenue passenger kilometers (RPK) was highest among major aviation markets like Australia, Brazil, China, Japan, Russia and the US.
It also mentioned that India’s domestic passenger traffic growth was followed by that of the Russian Federation at 11.1% and China at 9.3%.
In terms of capacity, IATA stated that India’s domestic available seat kilometres (ASK), which measures available passenger capacity, was higher by 18.8% in September, that of China’s 10.3% and the US saw a 8.6% rise.
Speaking of airline sector, India’s aviation industry is on a high-growth trajectory. India’s domestic air traffic has seen a prolific growth of 20-25% during 2015 and 2016. And in 2017, it tapered to 17.4%. However, for the first time, domestic air traffic crossed an important landmark of 100 million passengers during the previous year.
What’s foreseeable for India’s aviation traffic now is some pressure on the back of the consistent rise in crude oil prices.
Oil prices are closely monitored by the Indian air carriers, as aviation turbine fuel is their single largest input cost. A sharp rise in the cost of fuel puts pressure on margins, and consequently an increase in air fares.
