Indigo Shares Hit 52 Week High For 2nd Consecutive Day, What's Driving The Rally?

The share price of InterGlobe Aviation Ltd., the parent company of IndiGo, traded at a new 52 Week High value of 3131.95 in the intraday trade on Tuesday (January 16, 2024). Before this, Indigo shares traded on a new 52 Week High value of 3129.50 on Monday. The aviation stock touched new 52 Week High value of 3109.80, and 3090 on January 11, and January 10 respectively.

At 1:56 pm IST, IndiGo stock price was down 1.62% at Rs 3069.15 per share. At this price, the stock has a market capitalization of Rs 1,18,452.35 crore.
Indigo shares grabbed attention this week after the Civil Aviation Ministry (DGCA) issued a show cause notice to Indigo, Mumbai International Airport after a video of passengers eating on the tarmac amid flight delays at the airport went viral on social media. In an official statement issued on January 16, the ministry said that post the event, Minister of Civil Aviation Jyotiraditya Scindia held a meeting with all ministry officials. The ministry said an unsatisfactory or non-reply may attract enforcement action including a financial penalty.

Meanwhile, in a separate incident on Monday, a passenger Sahil Kataria assaulted the co-pilot, Anup Kumar after an hours-long delay in takeoff at the Delhi airport
A video was shared on X (formerly Twitter), where a man in a yellow hoodie abruptly ran up from the last row and hit the new pilot, who had replaced the previous crew due to Flight Duty Time Limitations (FDTL) norms after several hours of delay.
Sahil Kataria, who assaulted the flight captain, was arrested last evening and was released on bail shortly afterward.

In an official statement, IndiGo said the passenger had been declared "unruly" and the airline was considering including him in the no-fly list.
"The incident is being referred to the independent internal committee for appropriate action and inclusion of the passenger on the 'no-fly list' as laid down in regulatory guidelines. The safety and security of our passengers and crew are of paramount importance, and we maintain a zero-tolerance policy towards any such unacceptable behaviour," the airline said.

Hundreds of flights have been disrupted over the past few days because of fog in north India. Delays in flights, especially during foggy weather, have become a significant challenge for airlines and passengers alike.
On Tuesday, as many as 30 flights departing from Delhi's Indira Gandhi International Airport were delayed and another 17 flights were canceled due to freezing cold, according to ANI report quoting officials.

Indigo Shares In Focus Ahead Of Ayodhya Ram Mandir Ceremony:
Ahead of the Pran Pratishtha ceremony of the Ram Temple in Ayodhya on January 22, IndiGo, which commenced services between Ayodhya and Delhi from January 11, plans to operate flights connecting Ahmedabad Airport and Maharishi Valmiki International Airport in Ayodhya thrice a week. It is believed that Indigo is well-positioned to capitalize on the influx of tourists to the holy town.
Uttar Pradesh will have five more airports in the next one month which will take the total number of airports in the state to 19, said Union Civil Aviation Minister Jyotiraditya said on Thursday as he flagged off a direct flight from Ayodhya to Ahmedabad.

IndiGo stock price performance:
In the last six months, IndiGo shares have gained 15.40%, while the stock is up 18.38% in the last three months. The last one year, 2-year, and 3-year returns from the stock have gained 46.14%, 41.79%, and 88.18% respectively.