Aviation Stocks Decline After Air India Crash and Rising Geopolitical Tensions

Indian aviation stocks slipped on June 13 following a tragic Air India crash. A Boeing 787-8 Dreamliner en route from Ahmedabad to London crashed shortly after takeoff, resulting in 241 fatalities, including 232 passengers and 10 crew members. Preliminary visuals suggest the aircraft lost altitude moments after liftoff and crashed into a residential area. The cause is under investigation. Shares of InterGlobe Aviation (IndiGo) and SpiceJet dropped up to 4% in early trade as investor sentiment turned cautious. Adding to the pressure, escalating tensions in the Middle East further dampened market mood. Israel reportedly launched strikes on Iran’s capital targeting nuclear-linked sites, sparking fears of retaliation. This geopolitical uncertainty triggered a surge in crude oil prices, with Brent crude jumping up to 10% on Friday, marking a 12% weekly gain — the highest since 2022. At 9:30 am, IndiGo was trading at ₹5,265 (-3.8%) and SpiceJet at ₹44 (-2.6%). Broader markets also weakened, with the Sensex down 925 points at 80,766.47 and the Nifty falling 284 points to 24,603.65. Market breadth remained weak: 434 stocks advanced, 2,308 declined, and 104 were unchanged.