Knee-Jerk Reaction! Air India Crash Triggers Sell-Off In Aviation Stocks — Boeing, GE, Singapore Airlines, IndiGo, SpiceJet Drop

Shares of InterGlobe Aviation, the parent company of IndiGo Airlines, fell sharply by 4.32% on Thursday, trading at Rs 5,246.50, down Rs 236.75 from the previous close of Rs 5,483.25, as of 12:45 pm.

The stock opened at Rs 5,200.00 and touched a low of Rs 5,175.00 during intraday trade, reflecting investor concerns triggered by a major aviation tragedy and heightened geopolitical tensions in the Middle East.

The sharp drop in IndiGo's stock followed the tragic crash of an Air India Boeing 787-8 aircraft, Flight AI171, which departed from Ahmedabad’s Sardar Vallabhbhai Patel International Airport en route to London.

Shortly after takeoff at 1:39 PM IST (0809 UTC), the plane crashed into a resident doctors' hostel building, resulting in a devastating loss of life.

Only one person survived out of 242 people onboard. The passengers included 169 Indian nationals, 53 British nationals, seven Portuguese nationals, and one Canadian national.

The aircraft made a Mayday call before losing all communication with Air Traffic Control (ATC), prompting immediate concern.

International Aviation Stocks

Shares of Singapore Airlines (SIA), which owns a 25.1% stake in Air India, fell on the Singapore Exchange on Friday following the tragic Air India plane crash in Ahmedabad. SIA's stock dropped 1.7%, or 12 Singapore cents, to SGD 6.91 by midday, after falling as much as 2.1% earlier in the day.

Meanwhile, shares of Boeing Co, the aircraft manufacturer, also declined by 4.79% to $203.75, and General Electric Co, which supplies aircraft engines, dropped 2.25% to $239.99, as global investors reacted to the incident and rising aviation concerns.

Also Read: Boeing Shares Tank 5%: What's The Reason Behind The Decline?

Probe Underway

The Aircraft Accident Investigation Bureau (AAIB) has launched a formal probe into the incident. Though the crash involved Air India and not IndiGo, investor sentiment turned cautious toward the broader aviation sector, leading to a sell-off in related stocks.

In comparison, SpiceJet shares also fell, though more modestly. SpiceJet dropped 1.95% to close at Rs 43.81, down Rs 0.87 from its previous close of Rs 44.68. The stock opened at Rs 43.05, hitting a high of Rs 44.20 and a low of Rs 42.16.

Israel-Iran War

Apart from the Air India crash, rising tensions between Israel and Iran also added to market worries, especially for airline and travel-related stocks. Investors fear possible airspace restrictions and a drop in international travel demand.

On Friday morning, Indian stock markets saw a sharp fall, with many calling it a "Black Friday" for investors. Both major indices opened in deep losses due to growing concerns about the Middle East conflict. The Nifty 50 dropped by 180.55 points (0.73%) to 24,709.95, while the BSE Sensex fell by 563.09 points (0.69%) to 81,128.89.

The sell-off was triggered after Israel launched a military strike on Iran early Friday, raising fears of a wider war in the region. The United States called it a unilateral move by Israel and warned Iran not to respond by attacking US bases or facilities.