SpiceJet, IRCTC, Indian Hotels, other tourism-related shares extend losses as US-Iran tensions drag for 5th day

SpiceJet, IRCTC, ITDC shares extend losses in trade. 

• Airline, tourism stocks drop due to US-Iran tensions, flight cuts.
• SpiceJet, IndiGo, and tourism shares dropped up to 7 percent.
• Railway stocks also declined on concerns over travel disruptions.

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Shares of airline and tourism-related firms, including SpiceJet and IndiGo, extended losses on Wednesday as tensions between the US and Iran continued for the fifth day, weighing on investor sentiment.

The decline followed extensions of flight cancellations by several domestic carriers to and from West Asia amid airspace restrictions after military action by the US and Israel against Iran.

On the BSE, shares of SpiceJet fell over 7 percent. The stock has been declining for the past two trading sessions.

Low-cost carrier IndiGo on March 4 said it cancelled more than 500 overseas flights between February 28 and March 3, 2026, due to the ongoing Middle East tensions. Its shares were trading 4.6 percent lower at Rs 4,310.40 apiece.

"If these cancellations persist for seven days, we estimate they will erase about Rs 32 crore of IndiGo’s profit before tax, equal to about 6 percent of profit before tax in the fourth quarter," HSBC analysts led by Parash Jain said.

IndiGo stock falls 4.5%: What lies ahead?

Tourism-related stocks also traded lower. Shares of Ixigo declined, while India Tourism Development Corporation fell 4 percent. Easy Trip Planners was down 3 percent on the NSE.

Railway-linked stocks were also under pressure amid concerns that prolonged disruptions in air travel could affect passenger movement and last-mile connectivity. Shares of Rail Vikas Nigam Ltd dropped over 5 percent to a fresh 52-week low of Rs 283.20 per share.

Shares of Indian Railway Finance Corporation fell 3 percent, also impacted by a muted response to its Offer For Sale (OFS).

Shares of hospitality firms also declined. Lemon Tree Hotels was down more than 3 percent, Indian Hotels Company stock declined more than 2 percent. EIH Ltd, Chalet Hotels and ITC were down up to 1 percent.

Iran carried out fresh strikes on several Gulf countries in retaliation for the joint attack by Israel and the US. The US and Israel also launched further strikes on Iran. The escalation has raised concerns over possible supply disruptions and a rise in crude oil prices.

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