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During Wednesday’s trading session, aviation stocks were in the green zone with Interglobe Aviation (Indigo), Spicejet, Taal Enterprises, Jet Airways (India), and Global Vectra Helicorp all seeing gains ranging from 2% to 6%. Indigo’s shares hit a new 52-week high at ₹2,235.95 per share, fluctuating between an intraday low of ₹2,139.95 per share and an intraday high of ₹2,235.95 on the BSE.
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Following reports of Go First’s bankruptcy, stocks on the BSE experienced a mixed morning trade. Interglobe Aviation Ltd, Spicejet Ltd, and Jet Airways (India) Ltd saw gains ranging from 1% to 6% on Wednesday, while Taal Enterprises Ltd lost over 1%.
Amidst financial crunch, on Tuesday, the Indian low-cost carrier, Go First, filed for voluntary insolvency resolution proceedings before the National Company Law Tribunal (NCLT), Delhi. Consequently, Go First had to suspend its flights for two days.
CEO Kaushik Khona of the company informed news agency PTI on Tuesday that due to a serious cash shortage, the airline has temporarily halted operations on May 3 and May 4. In the wake of GoFirst’s bankruptcy, analysts predict that IndiGo will gain the biggest market share, while aviation stocks will benefit from a sharp decline in crude oil. Meanwhile, SpiceJet is taking advantage of GoFirst going off the air by reviving grounded aircraft. The airline stated that it has activated its plan to bring back 25 grounded aircraft, which will be funded by better cash accruals and the government’s Emergency Credit Line Guarantee Scheme (ECLGS). To boost its top line and get its grounded fleet back in the air, the airline has already mobilised over ₹400 crore.
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InterGlobe Aviation’s shares began at an intraday low of ₹2,139.95 per share on the BSE but quickly gained momentum. As of 10:11 IST, the stock was trading at ₹2,200.45, up over 6%. Analysts suggest that the stock experienced a gap up opening following news of its peer, Go Air, declaring bankruptcy, and the momentum may continue towards ₹2,400, while the support level is ₹2,100.
Spicejet’s shares gained over 4% as they opened at ₹31.95, slightly above the intraday low level of ₹31.80 per share on the BSE, during Wednesday’s session. The same session saw Global Vectra Helicorp, Taal Enterprises, and Jet Airways (India) with gains ranging from 1% to 5%.
