Analysts bet on IndiGo, SpiceJet despite travel curbs amid Omicron spread

However, near-term concerns will continue to weigh on the stocks as Omicron spread puts a spanner on the growth trajectory, say analysts

Shares of aviation companies — InterGlobe Aviation (IndiGo) and SpiceJet — have plunged sharply on the bourses over the past one month as a fresh spurt in Covid cases due to the Omicron variant prompted travel restrictions worldwide.  Back home, India decided to defer the resumption of international passenger flights, at least, till January 31, 2022. 

Given this, the shares of IndiGo and SpiceJet tanked 8 per cent and 19 per cent, respectively, during the period, against the BSE Sensex’s nearly 2-per cent fall.    

However, Gagan Dixit and Reena Narang, research analysts at Elara Capital, recently upgraded ratings on both these