IndiGo Shares Plummet Over 5% After Failed US-Iran Ceasefire Talks

IndiGo Share Price: The shares of low-cost passenger carrier IndiGo fell 5% on Monday's trading session amid weak global cues such as overnight 8% surge in crude oil prices and failed US-Iran ceasefire talks.

This aviation stock declined as much as 5% to hit an intra-day low of Rs 4,325 apiece.

Further, the Gurgaon-headquartered airline also factored in the surge in windfall tax from Rs 29.5 a litre to Rs ₹42 a litre on aviation fuel.

On the other hand, negotiations that took place between the US and Iran in Islamabad ended with no ceasefire agreement, signalling escalations in military action.

On Sunday, the US President Donald Trump said the US Navy would itself start blockading the Strait of Hormuz, intensifying geopolitical tensions and sending oil prices higher. 

Also Read: Stock Market Opening Bell: Sensex Falls 2.08%, Nifty 50 Down 1.92%

Meanwhile, Sensex opened Monday, April 13, 2.08% lower at 75,937.16 level, while Nifty 50 rang in 1.92% down at 23,589.60 level.

Asian markets traded in red during early hours. Japan’s Nikkei was trading 0.4% lower, South Korea’s Kospi fell 1.4%, and Australia’s ASX 200 declined 0.6%.

As of 9:40 AM, the shares of IndiGo declined as much as 3.10 % to Rs 4,413.10 per share. 

India's Jet Fuel Revision 

The country's largest airline on April 1 had revised fuel charges ranging from Rs 275 to Rs 10,000, which had pushed airfares higher for many domestic and international flights amid the rise in jet fuel prices.

"Although fully offsetting the fuel price increase would require substantial fare revisions, IndiGo has passed on a relatively smaller amount to customers, keeping in mind the consequential burden on them," IndiGo noted.