Air India Crash Sends Shockwaves Through Stock Market; IndiGo and SpiceJet Shares Tumble

Today, a serious accident occurred in an Air India plane at Meghaninagar in Ahmedabad, which has had a major impact on the stock market, causing a major decline in the stock market.

Published on:

12 Jun 2025, 11:42 am

A tragic Air India plane crash in Ahmedabad earlier today has had a significant impact not only on the aviation sector but also on the stock market. The crash, which occurred just 10 minutes after the aircraft took off at 1:38 PM from the Meghaninagar area, has sent airline stocks into a downward spiral. According to official reports from the Directorate General of Civil Aviation (DGCA), the flight was carrying 242 passengers, including 10 crew members and two children. The pilot had issued a distress signal shortly before the crash. Rescue teams have so far recovered 100 bodies from the wreckage. Ahmedabad Airport has been shut down until further notice as rescue and investigation operations continue.

Stock Market Reacts to Aviation Tragedy

In the immediate aftermath of the crash, Indian stock markets saw a sharp decline, particularly in aviation-related stocks. Shares of budget airlines IndiGo and SpiceJet suffered significant losses amid investor concerns over aviation safety and sentiment.

IndiGo’s share price plunged by 3.4%, closing at ₹5,437.50, marking one of the steepest single-day drops for the airline in recent times. The airline's market capitalization fell by ₹7,458.46 crore.
SpiceJet shares dropped by 2.6% to ₹44.30, resulting in a market cap erosion of ₹152.55 crore.

Broader Market Pressure

The Air India crash added to existing volatility in Indian markets, which were already under pressure following global developments, including the imposition of tariffs by former U.S. President Donald Trump. This combination of domestic tragedy and international policy uncertainty contributed to a broader decline in benchmark indices such as the Sensex and Nifty.

Impact Across the Aviation Sector

While Air India, now a Tata Group entity, is not publicly listed, the ripple effect of the tragedy was felt across the aviation industry. Analysts suggest that investor confidence in air travel safety may take a temporary hit, potentially affecting airline operations and passenger sentiment in the short term. Further investigations into the cause of the crash are underway, and more details are expected in the coming hours.