Indian aviation stocks came under pressure on June 13 after an Air India Dreamliner en route to London crashed shortly after takeoff from Ahmedabad, killing 241 people. The Boeing 787-8 was carrying 232 passengers and 10 crew members.
Shares of listed carriers InterGlobe Aviation (IndiGo) and SpiceJet fell up to 4 percent in early trade as investors reacted to the incident. While the exact cause of the crash is yet to be confirmed, preliminary visuals show the aircraft losing altitude moments after liftoff and crashing into a residential area.
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The selloff in aviation stocks was also influenced by rising geopolitical tensions in the Middle East. Global sentiment turned risk-averse after Israel launched a strike on Iran’s capital, targeting facilities reportedly linked to Tehran’s nuclear and missile programs. The Israeli government said it expected retaliatory attacks in response.
The escalation pushed crude oil prices sharply higher. Brent crude rose as much as 10 percent on Friday and is up about 12 percent for the week — the biggest weekly gain since 2022. JP Morgan had earlier warned that oil could touch $130 per barrel in a worst-case Middle East scenario.
At about 9:30 am, shares of IndiGo and Spicejet were trading at Rs 5,265 and 44, lower by 3.8 and 2.6 percent, respectively. Meanwhile, the Sensex was down 925.51 points or 1.13 percent at 80,766.47, and the Nifty was down 284.55 points or 1.14 percent at 24,603.65. About 434 shares advanced, 2308 shares declined, and 104 shares remained unchanged.
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