IndiGo shares slide 8% amid operational turbulence; airline sector risks stay elevated
Market veteran Ajay Bagga said the airline sector is best avoided at present due to its very high capital expenditure, with several operational and regulatory challenges.
- Dec 8, 2025,
- Updated Dec 8, 2025 7:33 PM IST
InterGlobe Aviation Ltd, the parent of IndiGo, remained under sustained selling pressure for the seventh consecutive session on Monday, following widespread flight cancellations linked to a major reboot of the airline's operational systems. The stock slumped 8.28 per cent to close at Rs 4,926.55.
The country's largest carrier said it is preparing to operate more than 1,800 flights, reconnecting its full network for the first time since large-scale disruptions began on December 2. IndiGo stated that it has witnessed "considerable and consistent improvement" in operations over the last 48 hours, even as it faced criticism from passengers and government authorities after hundreds of cancellations left travellers stranded across the country.
Market veteran Ajay Bagga said the airline sector is best avoided at present due to its very high capital expenditure, with several operational and regulatory challenges.
"When you have a market like India with diversified consumer opportunities, there is little need to enter a sector that is highly regulated, extremely capital-intensive and dependent on global aviation fuel prices, with limited pricing power and multiple cost pressures ranging from parking and airport charges to various other levies. It is very difficult for companies in such a sector to generate consistent profits. We have seen many companies struggle in this space," Bagga told Business Today, adding that the sector should be avoided without commenting on any specific company.
Bagga also said the recent disruption highlights the need for stronger infrastructure and increased competition. He added that there may now be greater focus on improving capacity and breaking the current concentrated market structure in Indian aviation.
From a technical perspective, analysts flagged growing weakness in the stock. Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said the stock has slipped below its 200-day simple moving average (DSMA) for the first time in a long period, signalling possible structural weakness. He noted that momentum indicators have moved deep into oversold territory, with near-term support seen around Rs 4,800, and advised investors to avoid bottom fishing until the stock stabilises.
Drumil Vithlani of Bonanza said the stock has broken decisively below its multi-month consolidation range and fallen under the key support band of Rs 5,360–5,420, which has now turned into immediate resistance. He added that the breakdown has come with strong bearish momentum and that, despite oversold conditions, the stock structure remains weak. After Monday’s close, he said the stock faces deeper downside risks toward Rs 4,820 and Rs 4,630.
InterGlobe Aviation Ltd, the parent of IndiGo, remained under sustained selling pressure for the seventh consecutive session on Monday, following widespread flight cancellations linked to a major reboot of the airline's operational systems. The stock slumped 8.28 per cent to close at Rs 4,926.55.
The country's largest carrier said it is preparing to operate more than 1,800 flights, reconnecting its full network for the first time since large-scale disruptions began on December 2. IndiGo stated that it has witnessed "considerable and consistent improvement" in operations over the last 48 hours, even as it faced criticism from passengers and government authorities after hundreds of cancellations left travellers stranded across the country.
Market veteran Ajay Bagga said the airline sector is best avoided at present due to its very high capital expenditure, with several operational and regulatory challenges.
"When you have a market like India with diversified consumer opportunities, there is little need to enter a sector that is highly regulated, extremely capital-intensive and dependent on global aviation fuel prices, with limited pricing power and multiple cost pressures ranging from parking and airport charges to various other levies. It is very difficult for companies in such a sector to generate consistent profits. We have seen many companies struggle in this space," Bagga told Business Today, adding that the sector should be avoided without commenting on any specific company.
Bagga also said the recent disruption highlights the need for stronger infrastructure and increased competition. He added that there may now be greater focus on improving capacity and breaking the current concentrated market structure in Indian aviation.
From a technical perspective, analysts flagged growing weakness in the stock. Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said the stock has slipped below its 200-day simple moving average (DSMA) for the first time in a long period, signalling possible structural weakness. He noted that momentum indicators have moved deep into oversold territory, with near-term support seen around Rs 4,800, and advised investors to avoid bottom fishing until the stock stabilises.
Drumil Vithlani of Bonanza said the stock has broken decisively below its multi-month consolidation range and fallen under the key support band of Rs 5,360–5,420, which has now turned into immediate resistance. He added that the breakdown has come with strong bearish momentum and that, despite oversold conditions, the stock structure remains weak. After Monday’s close, he said the stock faces deeper downside risks toward Rs 4,820 and Rs 4,630.