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Air India Crash Triggers 2% Drop in Tata Group Stocks

How did the Air India crash impact Tata Group's stock performance in June 2025?

Air India Crash Triggers 2% Drop in Tata Group Stocks

The tragic crash of Air India Flight AI171, a Boeing 787-8 Dreamliner, on June 12, 2025, led to a sharp drop in Tata Group stocks. The crash resulted in the death of 241 passengers and crew members, with the lone survivor being a British national. The crash occurred shortly after takeoff from Ahmedabad, heading for London Gatwick, and it tragically impacted a nearby medical college hostel.

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How did the Air India crash affect Tata Group stocks?

The news of the Air India crash sent shockwaves through the stock market, affecting the performance of Tata Group stocks. On June 13, 2025, Tata Group stocks fell by up to 2% in intraday trading, with key companies like Tata Technologies and Trent seeing significant declines.

Here’s a breakdown of how different Tata Group stocks performed on June 13, 2025:

StockPrice Change (%)Stock Price (₹)
Tata Technologies-2.6%N/A
Trent-2.0%N/A
Tata Power-1.5%N/A
Tata Consumer-1.0%N/A
Tata Steel-1.2%N/A
Tata Consultancy Services-1.2%N/A
Indian Hotels-1.5%₹733.10
Tata Coffee+4.0%₹344.80
Rallis India+0.5%₹309.70

As we can see from the table, Tata Technologies and Trent were among the biggest laggards, experiencing a drop of up to 2.6%. Tata Power, Tata Consumer, Tata Steel, and Tata Consultancy Services also saw a decline in their stock prices by 1% to 1.5%. On the flip side, Tata Coffee and Rallis India saw positive movements, with Tata Coffee increasing by over 4%.

What was the market-wide impact?

The crash had a broader impact on the aviation sector as a whole. Shares of SpiceJet and IndiGo both saw significant declines in early trade on June 13, 2025. Here’s how other major aviation stocks performed:

StockPrice Change (%)Stock Price (₹)
SpiceJet-3.42%N/A
IndiGo (InterGlobe)-4.83%₹5,212
Adani Enterprises-2.0%N/A

As shown, SpiceJet dropped by 3.42%, while IndiGo (InterGlobe) saw a more significant fall of 4.83%. Even Adani Enterprises, which manages the Ahmedabad airport where the crash took place, experienced a 2% decline.

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How did Tata Group respond?

In response to the tragedy, Tata Group has shown unwavering support for the victims and their families. Tata Sons Chairman N. Chandrasekaran announced that the group would provide a ₹1 crore financial assistance to the families of those who lost their lives. The group has also pledged to cover the medical expenses of the injured and help rebuild the impacted BJ Medical College hostel.

What is the status of the investigation?

The investigation into the crash is ongoing, with involvement from India’s aviation regulator and U.S. agencies, including Boeing. Initial reports suggest a possible engine failure, given the abnormal climb and descent patterns observed during the flight.

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Conclusion

The Air India crash not only caused immense loss of life but also had a significant impact on Tata Group stocks, with declines across many of the group’s key companies. However, the group’s response has been commendable, offering financial support to the affected families and helping in rebuilding the impacted medical facilities. While the investigation continues, this tragic event serves as a reminder of the importance of safety in aviation.

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Rishi Gupta

Rishi Gupta is a dynamic day trader known for his quick decision-making and strategic approach to short-term market movements. With years of experience in high-frequency trading and chart analysis, Rishi specializes in spotting intraday trends and capitalizing on price fluctuations. His trading philosophy is rooted in discipline, risk control, and technical analysis. Through his writing, Rishi aims to help aspiring day traders understand the nuances of short-term trading, with an emphasis on risk-reward ratios, momentum, and timing.

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