Share markets in India are presently trading on a negative note. Sectoral indices are trading on a mixed note, with stocks in the telecom sector and automobile sector witnessing maximum selling pressure.

The BSE Sensex is trading down by 129 points (down 0.4%) and the NSE Nifty is trading down by 46 points (down 0.4%). Meanwhile, the BSE Mid Cap index is trading down by 0.5%, while the BSE Small Cap index is trading up by 0.8%. The rupee is trading at 73.01 to the US$.

In the news from the aviation sector, shares of the airline companies are witnessing selling pressure today. Losses are seen on the back of a sharp rise in crude oil prices.

Note that crude oil prices rose this week on expectations of a tighter market once US sanctions start targeting Iran’s petroleum industry from next month.

Speaking of the 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 in a calendar 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 airfares.

In the news from the financial sector, shares of IL&FS group companies are witnessing buying interest today as the government took control of the IL&FS group. Although air travel is becoming the new normal, investors need to understand the industry dynamics before buying up aviation stocks.

The government took control of the troubled Infrastructure Leasing and Financial Services (IL&FS) and said the move was to protect the country’s financial system and markets from potential collapse.