Aviation stocks hit 52-week low after import duty raised on jet fuel

Aviation stocks tumbled up to 5 percent Thursday after the government raised import duty on jet fuel.

Shares of Jet Airways tumbled 4.82 percent, SpiceJet 1.95 percent, and InterGlobe Aviation 1.27 percent on BSE.

All these stocks hit their respective 52-week lows during the day.

The government Wednesday raised import duties on 19 items, including jet fuel as it looks to check the widening current account deficit resulting from high crude oil prices and the rupee dipping to a historic low.

The government has announced an import duty of 5 percent on aviation turbine fuel (ATF). It was nil earlier.

"The 5 percent basic customs duties (BCD) hike on aviation turbine fuel (ATF) was unanticipated, and could lead to a rise in fuel bill up to 0.5 percent for carriers such as Indigo," JM Financial Institutional Securities said in a report.