Last Updated:June 13, 2025, 10:54 IST
Indian aviation stocks slipped sharply on June 13 following a fatal Air India crash and escalating geopolitical tensions in the Middle East
IndiGo, SpiceJet
Aviation Stocks Skid: Indian aviation stocks slipped sharply on June 13 following a fatal Air India crash and escalating geopolitical tensions in the Middle East.
An Air India Boeing 787-8 Dreamliner bound for London crashed shortly after takeoff from Ahmedabad, killing all 241 people on board, including 232 passengers and 10 crew members. Preliminary visuals indicated the aircraft lost altitude moments after liftoff and crashed into a residential area. The cause of the accident is yet to be officially determined.
The tragic incident sent shares of listed airlines lower in early trade. InterGlobe Aviation (IndiGo) fell 3.8% to Rs 5,265, while SpiceJet declined 2.6% to Rs 44.
Adding to the pressure was a sharp rise in crude oil prices after Israel launched a strike on Iran’s capital, reportedly targeting nuclear and missile sites. Fears of Iranian retaliation pushed Brent crude up nearly 10% on Friday, with prices rising 12% for the week—marking the biggest weekly gain since 2022. JP Morgan has previously cautioned that oil could surge to $130 per barrel in a worst-case regional conflict scenario.
Broader market sentiment also turned risk-averse. At 9:30 am, the Sensex was down 925.51 points (1.13%) at 80,766.47, while the Nifty dropped 284.55 points (1.14%) to 24,603.65. Market breadth was deeply negative with 2,308 stocks declining, 434 advancing, and 104 unchanged on the BSE.
Fuel remains one of the largest cost components for airline companies. A sharp rise in crude oil prices directly inflates operating expenses, exerting downward pressure on aviation stock prices.
The fall in airline stocks also mirrors the broader weakness in Indian equities. On Friday, the BSE Sensex tanked over 1,300 points in early trade, while the NSE Nifty 50 slipped below the 24,500 mark amid heightened geopolitical tensions and a spike in oil prices.
Technical Outlook: IndiGo Remains Structurally Bullish
According to Anshul Jain, Head of Research at Lakshmishree Investments, IndiGo’s stock recently broke out of a box pattern at Rs 5,035, supported by strong price action—a sign of underlying bullishness.
“The current pullback should be viewed as a healthy retest of the breakout zone, not a breakdown. As long as the stock holds above Rs 5,035, the overall trend remains positive,” said Jain. “Positional traders can look at any dip toward this level as a fresh buying opportunity, with potential for a renewed uptrend.”
At 9:35 AM, IndiGo shares were trading 4.91% lower at Rs 5,213.90 apiece, while SpiceJet was down 3.42% at Rs 43.15 per share on the BSE.
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Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More
Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More
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