IndiGo’s share price has surged by nearly 10% in the last six sessions despite a downturn in the Indian stock market. Analysts attribute this to increased passenger demand, positive brokerage outlooks, and strategic capacity expansion.
InterGlobe Aviation Ltd. (IndiGo), India’s largest low-cost carrier, has witnessed a nearly 10% surge in share price over the last six trading sessions, defying the broader market trend. The Indian stock market has been experiencing a selloff, with benchmark indices Sensex and Nifty 50 posting losses in 15 of the last 17 sessions.
Despite this downturn, IndiGo’s stock continues to rise due to a positive outlook from market analysts and strong passenger demand, especially driven by the Maha Kumbh Mela event in Prayagraj, Uttar Pradesh. Analysts suggest that the aviation stock could maintain its upward momentum in the upcoming sessions.
IndiGo’s Stock Performance Amid Market Downturn
The Indian stock market has faced significant pressure, with Sensex dropping over 800 points in Monday’s session due to weak global cues and rising trade tensions between the United States and other economies. The Nifty 50 index declined by 1.06%, closing at 22,553.35.
However, IndiGo shares have defied this negative trend, gaining nearly 13% since the Maha Kumbh Mela began on January 12, 2025. On Monday, the stock closed at ₹4,521, a 0.25% increase from the previous close of ₹4,509.60.
Why is IndiGo’s Share Price Rising?
Experts attribute IndiGo’s stock rally to several factors, including increased passenger traffic, brokerage upgrades, and market dominance.
Dr. Ravi Singh, SVP of Retail Research at Religare Broking, noted that IndiGo’s passenger load factors (PLFs) have been rising, supported by increased air traffic demand. The Maha Kumbh Mela has played a crucial role in boosting demand for flights to major airports in Uttar Pradesh. Citi, a global brokerage firm, has also given a positive outlook on IndiGo, citing higher demand and strong operational efficiency.
Palak Devadiga, a research analyst at StoxBox, emphasized that IndiGo’s revenue growth is expected to be strong in Q4FY25. The airline’s aggressive capacity expansion and fleet additions further enhance its market position. IndiGo’s ability to maintain a lower cost structure than competitors also strengthens its financial outlook.
Should Investors Buy IndiGo Shares?
Market analysts remain optimistic about IndiGo’s stock. Sumeet Bagadia, Executive Director at Choice Broking, stated that the stock has given a fresh breakout at ₹5,225, signaling further upward movement.
“For short-term investors, IndiGo shares can be bought at the current market price of ₹4,521, with a target of ₹4,800 and a stop loss at ₹4,450. Existing investors should hold their positions,” said Bagadia.
IndiGo’s Market Performance Over Time
IndiGo shares have delivered strong returns to investors over the years. The stock has surged over 240% in the last five years and provided 42% returns in the past year alone. While it has declined by 1.53% year-to-date (YTD), its recent surge suggests that investor sentiment remains positive.
Despite the broader market downturn, IndiGo has emerged as a resilient performer, driven by strong passenger demand, positive brokerage outlooks, and strategic expansion. Analysts remain bullish on the stock’s future prospects, indicating that its upward trajectory may continue in the near term.
