New Delhi: Aviation rallied up to 7 percent on heavy buying by investors on Wednesday amid a sharp decline in crude oil prices and the announcement of a credit line for airlines hit by the West Asia conflict. Shares of InterGlobe Aviation jumped 6.60 percent to settle at Rs 4,519.55 on the BSE. During the day, the stock surged 7.64 percent to Rs 4,563.75.

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SpiceJet shares climbed 4.96 percent to end at Rs 12.70.

Brent crude, the global oil benchmark, tumbled 10.50 percent to USD 98 per barrel.

The government on Tuesday announced an Emergency Credit Line Guarantee Scheme (ECLGS) with an outlay of Rs 18,100 crore to provide relief for MSMEs and airlines impacted by the West Asia conflict.

The scheme -- expected to help in providing additional credit flow of Rs 2.55 lakh crore, including Rs 5,000 crore for airlines -- was approved by the Union Cabinet on Tuesday.

Information and Broadcasting Minister Ashwini Vaishnaw told reporters on Tuesday that the ECLGS 5.0, having an outlay of Rs 18,100 crore, would help airlines as well as MSMEs impacted by the West Asia crisis.

"The scheme has been brought to address the stress in MSME and airline sectors due to the West Asia conflict," he said.

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Hariprasad K, Research Analyst and Founder, Livelong Wealth, said: "Oil-sensitive sectors outperformed, with IndiGo, BPCL, Asian Paints, and Pidilite gaining on the back of falling crude, which directly improves input cost dynamics and margins."

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