Israel-Iran conflict: Aviation stocks extend fall; IndiGo, Spicejet shares plunge over 5% on surging crude oil prices

Aviation stocks, including InterGlobe Aviation and Spicejet shares, cracked more than 5% each on Friday, weighed down by a sharp surge in crude oil prices due to the Israel-Iran conflict, and weak sentiment after the Air India plane crash in Ahmedabad. 

Reports of a likely stake sale by promoters of IndiGo also kept the stock subdued. According to a CNBC-TV18 report, the promoter group, Interglobe Enterprises, will likely sell about a 4% stake in IndiGo through block deals for around $1 billion. Interglobe Enterprises holds a 35.71% stake in IndiGo, as per data from exchanges.

IndiGo share price declined as much as 5.62% to ₹5,175.00 apiece, while SpiceJet share price plunged 5.64% to ₹42.16 apiece on the BSE.

The fall in aviation stocks comes after the international crude oil prices jumped more than 13% during the day amid escalating geopolitical tensions in the Middle East after Israel launched airstrikes on Iran and targeted its key nuclear and military sites.

Brent crude oil price rallied 9.39% to $75.87 a barrel, while the US West Texas Intermediate (WTI) crude futures surged 9.42% to $74.45. On MCX, crude oil prices were trading higher by ₹527.00, or 9.19% at ₹6,260.00 per barrel.

Fuel is a major cost component. A rally in crude oil price raises operating expenses for the airline companies, pressuring stock prices.

Aviation stock price fall also comes in-line with the broader Indian stock market crash today. The benchmark BSE Sensex crashed over 1,300 points, while the NSE Nifty 50 slipped below 24,500 level during the opening trade.

Air India Plane Crash

Sentiment in Indian aviation stocks also soured after an Air India plane bound for London crashed moments after taking off from Ahmedabad, Gujarat, on Thursday, June 12. The airline said that of the 242 aboard, there are 241 confirmed fatalities.

Technical Outlook

IndiGo share price broke out of a box pattern at ₹5,035, confirming bullish intent with strong price action, noted Anshul Jain, Head of Research at Lakshmishree Investments.

“The recent pullback is a healthy retest of the breakout zone, not a sign of weakness. As long as the IndiGo stock price holds above ₹5,035, the structure remains bullish. Any dips toward this level should be seen as fresh buying opportunities for positional traders, with potential for a renewed uptrend to resume soon,” Jain said.

At 9:35 AM, IndiGo share price was trading 4.91% lower at ₹5,213.90 apiece, while Spicejet share price was down 3.42% at ₹43.15 apiece on the BSE.

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