Aviation stocks rose in early trade on Monday after the cut in fuel prices. Jet Airways (India) jumped 6.7 per cent while SpiceJet rose 3.9 per cent.
Indian Oil Corporation has cut aviation turbine fuel prices by 8.4 per cent to 9.7 per cent, according to Reuters calculations based on IOC's data.
Relative valuation on likely Indigo-Qatar Airways deal and IndiGo's upcoming IPO has also helped. Qatar Airways said on Tuesday it was in talks with IndiGo about taking a stake in the airline.
Fuel contributes one-third of operational costs of airlines, according to analysts.