IndiGo, SpiceJet Share Price Slide Up to 4% Amid Air India Crash and Crude Oil Surge

Market Performance

Indian aviation stocks experienced sharp selling pressure on June 13 following tragic global developments that triggered risk aversion across various sectors.

• Sensex declined 925.51 points or 1.13%, closing at 80,766.47
• Nifty slipped 284.55 points or 1.14%, ending at 24,603.65
• Market breadth remained weak, with 2,308 stocks declining, 434 advancing, and 104 unchanged

Aviation-related counters led the decline, as negative sentiment weighed heavily on investors' psyches.

Main News

Shares of IndiGo and SpiceJet came under intense selling pressure after an Air India Dreamliner crash that killed 241 people on board.

• The Boeing 787-8, flying from Ahmedabad to London, crashed shortly after takeoff
• The aircraft was carrying 232 passengers and 10 crew members
• Early visuals revealed the jet lost altitude and crashed into a residential area
• Investigation into the cause of the crash is still underway

This tragic incident raised serious concerns among investors regarding aviation safety and triggered a broad selloff in airline stocks.

Company Details

IndiGo (InterGlobe Aviation)

• Share price at 9:30 AM: ₹5,265
• Intraday decline: 3.8%

SpiceJet

• Share price at 9:30 AM: ₹44
• Intraday decline: 2.6%

The drop in IndiGo and SpiceJet share prices reflects a panic-driven reaction from investors amid multiple shocks to the aviation sector.

Crude Oil Surge Adds to Pressure

In addition to the aviation accident, rising crude oil prices have further dampened market sentiment:

• Brent crude spiked 10% on Friday
• Weekly gain stood at 12%, marking the highest weekly rise since 2022

Geopolitical tensions in the Middle East fueled this rally:

• Israel launched a strike on Iran's capital, targeting sensitive defense facilities
• The attack raised concerns of retaliation, increasing global risk aversion
• Higher crude prices raise operational costs for airlines, putting additional pressure on margins

Summary of the Article

• Shares of IndiGo and SpiceJet fell by up to 4% in early trade on June 13
• The decline followed a tragic Air India crash that claimed 241 lives
• A sharp spike in crude oil prices due to Middle East tensions added further pressure
• Broader markets were also weak, with Sensex and Nifty falling over 1%
• IndiGo, SpiceJet share price is under watch as investors reassess aviation sector risks