Aviation shares under pressure; IndiGo plunges 20%

IndiGo tanked 20% to Rs 958 on the BSE, biggest intra-day fall since its listing in November last year.

InterGlobe Aviation, the owner of India’s largest airline IndiGo, has tanked  20% at Rs 958 on the BSE. The stock recorded its biggest intra-day fall since its listing in November last year.

Shares of aviation companies were under pressure dropping over 10% on the bourses in an otherwise firm market as oil prices rebounded over $1 a barrel from 12-year lows on Thursday, their biggest daily gain this year.

The company reported a 23.7% surge in profit in the December quarter to Rs 657 crore benefited from lower fuel prices and higher traffic. Quarterly fuel costs for IndiGo declined 20% to Rs 117 crore, while the number of passengers jumped 28% to 8.33 million.

Among the other individual stocks, Jet Airways dipped 5% to Rs 629, while SpiceJet down 3% at Rs 72 on the BSE. The S&P BSE Sensex was up 1.3% or 310 points at 24,264 at 10:15 a.m.

U.S. crude vaulted back towards $30 per barrel as hopes for easier monetary policy from Europe, the Reuters report suggests. CLICK HERE TO FULL REPORT.

Most of these stocks had outperformed the market in past couple of months. Since its listing on November 10, 2015 shares of IndiGo surged 36% as compared to 7% decline in the benchmark index till yesterday. Jet Airways zoomed 56%, while SpiceJet soared 54% during the same period, due to fall in crude oil prices. Jet fuel constitutes more than 40% of an airline’s operating costs.