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Shares of InterGlobe Aviation, the parent company of IndiGo, jumped over 7% on Thursday, 5 November, emerging as the top gainer on the Nifty 50. The rally was driven by a sharp decline in global crude oil prices, which boosted sentiment towards airline stocks. The stock extended its winning streak to a fifth consecutive session, gaining 17.5% over the period.
Brent crude prices fell over 8% in the previous session to slip below $94 a barrel, following signals from the US and Iran that they were willing to pursue peace talks. Lower crude prices are positive for airlines, as aviation turbine fuel (ATF) accounts for a significant share of their operating costs.
Oil prices extended their decline for a fourth consecutive session on Thursday, amid expectations that the losses suffered by US President Donald Trump's Republican Party in the Congressional elections could reduce the risk of further escalation in the US-Israeli war on Iran.
According to a Reuters report, Brent crude futures fell 97 cents, or 1.03%, to $93.65 a barrel as of 0211 GMT, while US West Texas Intermediate (WTI) crude futures declined $1.14, or 1.29%, to $86.98 a barrel.
shaBoth benchmarks had plunged more than 8% in the previous session, settling at their lowest levels since 31 August.
Adding to the developments around the airline, IndiGo is reportedly in discussions to purchase 100 regional jets from Brazilian aircraft manufacturer Embraer, with an option to acquire around 50 additional aircraft, according to a Reuters report citing three people familiar with the matter.
If finalised, the deal could rank among the largest orders placed with the Brazilian planemaker. However, the discussions are at an early stage, and an agreement is not guaranteed. The aircraft model has not yet been finalised, and the order size could change, the sources told Reuters on condition of anonymity.
Deliveries, if the deal goes through, are likely to begin no earlier than 2030, two of the people said, as per Reuters report.
The recent gains in IndiGo shares also follow a positive market reaction to the Centre's notification of new airfare pricing regulations under Rule 192 of the Bharatiya Vayuyan Niyam, 2026.
Under the new regulations, airlines can determine their own airfares based on operating costs, while remaining obligated to submit fare details to the Directorate General of Civil Aviation (DGCA). The move provides airlines with greater flexibility in pricing their services.
Meanwhile, IndiGo reported a narrowing of its consolidated net loss to ₹1,879.1 crore in the September quarter, compared with a loss of ₹2,582.1 crore in the corresponding quarter last year.
The airline's profitability continued to face pressure from higher fuel costs and rupee depreciation. However, Chief Executive Officer Willie Walsh said the carrier has several options to manage rising operating expenses.
India's largest airline said it would remain focused on short-haul operations and adopt a prudent approach to capacity amid the challenges facing the aviation industry.
InterGlobe Aviation's total income increased to ₹24,311.9 crore in the second quarter of FY27 from ₹19,599.5 crore in the year-ago period, according to its regulatory filing.
However, total expenses also rose sharply to ₹26,188.4 crore during the quarter. Aircraft fuel expenses surged 67.2% year-on-year to ₹9,966.8 crore, highlighting the impact of higher fuel costs on the airline's profitability.
IndiGo share price today opened at an intraday high of ₹5,485.40 apiece on the BSE, the stock touched an intraday low of ₹5,363.55 per share.
Gaurav Arora, Head of Research at SAHI, said the stock has rallied more than 20% from its 23 October low of around ₹4,450 in less than two weeks. During this upmove, it has reclaimed both its 50-day and 200-day moving averages, which are positioned close to each other around ₹4,900–4,950, signalling an improvement in the near-term technical outlook.
He noted that the stock is now approaching the ₹5,400–5,500 zone, which acted as a strong resistance between June and August. This level will be a crucial hurdle for the stock. Much of the recent rally has been driven by softer crude oil prices, as elevated fuel costs were the primary reason behind the company's Q2 FY27 loss, making the stock particularly sensitive to movements in crude prices.
According to Arora, a decisive close above ₹5,500 could attract further buying interest and push the stock towards ₹5,900. However, failure to cross this resistance could lead to a pullback towards ₹5,000–5,050. This zone, which marked the breakout level earlier this week, is now an important support to watch.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said IndiGo is witnessing renewed buying interest following the sharp overnight correction in crude oil prices. He noted that lower crude prices are positive for the aviation sector, given the significant contribution of fuel costs to airline operating expenses.
From a technical perspective, Shah said the stock is showing signs of improving momentum and is attempting to sustain its recovery around the ₹5,400 mark. The ₹5,450–5,500 zone remains an immediate resistance area, and a decisive breakout above this range could open the door for further upside towards ₹5,650–5,750.
On the downside, he identified ₹5,250–5,300 as the immediate support zone. Sustained softness in crude oil prices, coupled with a breakout above the resistance range, could further strengthen the bullish outlook, he added.
Shitij Gandhi, AVP – Equity Technical Research at SMC Global Securities, said IndiGo is witnessing a strong recovery, with a potential bullish reversal emerging after the stock broke above its descending trendline resistance.
He noted that the stock rebounded from the ₹4,550–4,600 zone and reclaimed its key moving averages, indicating renewed buying interest. The immediate resistance is placed at ₹5,450–5,500, which is a crucial supply zone corresponding to previous swing highs.
According to Gandhi, a sustained breakout above ₹5,500 could accelerate the rally towards ₹5,600 and subsequently ₹5,900. On the downside, ₹5,050–5,060 is the immediate support, followed by ₹4,900–4,950.
He added that the overall technical structure has turned positive, with the recent breakout indicating improving momentum. Sustaining above ₹5,050 will be important for maintaining the bullish bias and supporting further upside in the coming sessions.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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