Shares of InterGlobe Aviation, which is the parent company of IndiGo, extended their early gains on Wednesday, climbing up to 9% as sentiment firmed up across aviation stocks.
IndiGo shares climbed as much as 8.33% to Rs 4272.20. SpiceJet shares rose over 4.4% to Rs 10.17 around 9:48 am, signalling continued buying interest in the sector.
The rally reflects broad-based buying across aviation stocks, with IndiGo leading the gains and setting the tone for the sector.
The rally was initially sparked by IndiGo’s appointment of aviation veteran Willie Walsh as CEO, a move that boosted confidence in the airline’s strategic direction and operational recovery.
As the market leader, IndiGo’s positive trigger has spilled over to the broader aviation space, lifting peer stocks like SpiceJet.
With stocks already oversold after recent declines, the move has been amplified by short covering and momentum buying, pushing prices higher through the session.
A key intraday trigger has been the clarification on aviation turbine fuel (ATF) prices.
had weighed on sentiment. However, it later emerged that the steep increase applies to fuel for chartered flights, while ATF prices for commercial airlines have risen by a more modest 8.5% to around Rs 1.04 lakh per kilolitre.
This distinction has significantly eased fears of a sharp margin hit for airlines.
The shift from a perceived cost shock to a manageable increase has improved the near-term outlook, prompting further buying in aviation stocks.
The combination of leadership-driven optimism and easing cost concerns has turned sentiment decisively positive in the short term.
However, fuel costs remain elevated and continue to pose a risk to profitability if they trend higher. For now, the rally reflects improving sentiment and positioning, though its sustainability will depend on how fuel prices and demand dynamics evolve.