Shares of Indian aviation companies faced significant selling pressure on Monday due to escalating tensions in the Middle East, leading to crude oil prices surpassing $110 per barrel. This surge was triggered by major producers cutting output and the effective closure of the Strait of Hormuz amid the Iran conflict. InterGlobe Aviation (IndiGo) and other airline stocks experienced sharp declines, with IndiGo shares closing at Rs 4,236, down approximately 4% on the BSE.
Similarly, SpiceJet shares dropped by 6.64% to end at Rs 13.07 on the exchange, hitting an intraday low of Rs 12.85. FlySBS Aviation, listed in the SME category on the NSE, also saw a decrease of around 5%, closing at Rs 433.35. On the contrary, Global Vectra Helicorp, a private helicopter operator, saw its shares rise to Rs 158 on the BSE.
The broader market also witnessed a downturn, with most sectors experiencing selling pressure except for the technology index. The Sensex plummeted by 1,352.74 points or 1.71% to settle at 77,566.16, while the Nifty 50 closed at 24,028.05, down 422.40 points or 1.73%. Notably, Nifty Auto was the top laggard, dropping by about 4% to 25,965.95, followed by Nifty PSU Bank, which declined by a similar margin to 8,819.30.
Investor confidence was impacted by the soaring crude oil prices, breaching $100 per barrel amidst the escalating tensions in the Middle East. Prices surged close to $110 per barrel as major regional producers curtailed output while the Strait of Hormuz remained effectively closed due to the Iran conflict.
