Shares of InterGlobe Aviation, the parent company of IndiGo, declined 5.1% to ₹5,120 on Wednesday, July 8, 2026, making it one of only 4 stocks in the entire Nifty50 to close in the green amid heavy selling pressure. The airline's domestic market share slipped to 64.9% in May, marking a decline from previous levels, while Air India Group's market share climbed to 25.6%, according to latest DGCA data. Despite this setback, the stock remains more than 34% above its 52-week low of ₹3,894.80 touched on March 23, 2026, though it has shed 21.7% over the past six months.
The sentiment was severely impacted by crude oil prices surging more than 6% intraday to over $78.83 per barrel following US President Donald Trump's announcement that the interim agreement with Iran is "over," though he will allow talks to continue. As reported by Business Standard, Brent crude and West Texas Intermediate crude gained about 5% over the past two trading sessions, raising concerns over higher aviation fuel costs for airlines. The oil price surge was triggered by US strikes on more than 80 Iranian-linked targets in Iraq and Syria in retaliation for attacks on three ships in the Strait of Hormuz. For India, any sustained increase in oil prices directly worsens the trade deficit, pushes up inflation and complicates the Reserve Bank of India's path towards interest rate cuts.
According to official DGCA data reported by Business Standard, Indian airlines carried 1.53 crore domestic passengers in May, representing a more than 11% increase from 1.41 crore passengers in April. The data showed domestic air traffic rose 9.49% compared with May 2025. For the January-May 2026 period, passengers carried by domestic airlines were 729.40 lakh versus 715.70 lakh in the corresponding period of the previous year, registering an annual growth of 1.91%. The latest DGCA data shows domestic airlines carried 1.53 crore passengers in May, up 1.21% from a year earlier despite seasonal fluctuations and higher airfares.
In terms of on-time performance across 10 major airports in May, IndiGo topped the list with 82.8% on-time performance, followed by Akasa Air at 78.3% and the Air India Group at 74.5%, as reported by Business Standard. According to Harish Jujarey, head of technical equity research at Prithvi Finmart, IndiGo's stock has moved above both its 20-day and 200-day moving averages while retracing more than 50% of its previous decline, indicating a positive medium-term trend. The immediate support is placed around ₹5,180, followed by crucial 200-day moving average support near ₹5,000.
Separately, IndiGo announced the appointment of Kanwal Jeet Singh Bakshi as its chief human resources officer, who will assume the role on July 20, 2026. Bakshi will succeed Sukhjit Singh Pasricha, who will step down from the position on July 19, 2026. Meanwhile, SpiceJet shares were down 1.21% at ₹11.39 during early trade, with the stock having been on a prolonged decline since November 2025 and losing nearly 60% over the past six months due to legal obligations, lease liabilities and a smaller operating fleet, leaving it more exposed to higher fuel costs. Jio Financial Services was the second-biggest loser on the Nifty50, falling 5.02% to ₹229.67 - dangerously close to its 52-week low of ₹223.30 - amid limited earnings visibility from its financial services business.
