As planes take-off in India, aviation stocks slump on D-Street; Indigo, SpiceJet down 3%

Aviation stocks were dragged down on Dalal Street with investors having selling bias.

May 26, 2020 10:05 IST India Infoline News Service

While it was indeed joyful to watch many Indians take-off in the air, as the domestic passenger flights have finally resumed after more than 2 months halt due to Covid-19 lockdown. However, aviation stocks were dragged down on Dalal Street with investors having selling bias.

On Monday, domestic carriers like Indigo, SpiceJet, Air India, Air Asia, GoAir and Vistara were allowed to resume their business as per Civil Aviation Ministry guidelines and many did so as some 532 flights have taken off.

On the contrary, the listed aviation stocks like Interglobe Aviation (Indigo) and SpiceJet slumped by 3-3.50% on Sensex by touching an intraday low of Rs945.55 per piece and Rs43.45 per piece respectively.

At around 10.36 am, Indigo stocks were performing at Rs955.80  per piece down by 2%. The stock opened higher at Rs1000 per piece before taking the downward route.

At the same time, SpiceJet stocks were below 3% trading at Rs43.90 per piece. Similar to Indigo, SpiceJet also opened higher at Rs46 per piece before giving away gains.

In the previous closing, Indigo and SpiceJet stock price ended at Rs974.10 per piece and Rs45.05 per piece respectively.

Civil Aviation Minister Hardeep Singh Puri through his twitter account, informed that, from no domestic passenger flights on May 24 to 532 flights and 39,231 passengers on May 25.

On Monday, he tweeted saying, "Indians soar in the skies again! A beautiful live capture from #flightradar24 shows how our skies look busy again as domestic civil aviation recommences in India from today."

Before the commencement of flight operations across India, the ministry held multiple meetings among various stakeholders to chalk down the framework for the passengers and airliners.

From May 25 onward, there will be 50 flights operating on a daily basis in Mumbai. While 30 flights will be handled at Hyderabad airport. Although there will be no limit on departures at Chennai airport, however, only 25 arrivals will be allowed. Many other states have also commenced their services with precautions and necessary guidelines. 

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