IndiGo off to a flying start, but peer stocks like SpiceJet, Jet Airways tumble

Shares of SpiceJet and Jet Airways slipped up to 6 per cent in trade on Tuesday after InterGlobe Aviation, the owner of low-cost airline IndiGo, made a stellar debut on stock exchanges.

Aviation stocks have been rising in the run-up to IndiGo's listing. They rose up to 4 per cent in today's trade itself, only to return in the negative territory as the session progressed.

Stock of SpiceJet ended the day 5 per cent down after skidding as much as Rs 48.05, down 5.96 per cent during the day, while stock of Jet Airways closed 4.27 per cent down to Rs 421.55, on the Bombay Stock Exchange (BSE).

Investors might pick IndiGo over Jet Airways and Spicejet, said a fund manager to Reuters who did not wish to be named. He added that rerating of Jet Airways, Spicejet stocks was unlikely after IndiGo IPO.

Profit-booking by investors may also have caused slump in the aviation stocks.

IndiGo is the only profitable Indian airline. It has the largest market share and a track record of controlling costs, added the fund manager.

Shares of InterGlobe Aviation listed at Rs 856 with a premium of 11.89 per cent against the issue price of Rs 765 on BSE.

The stock hit an intraday high of Rs 898, up 4.90 per cent against the opening price, while it rose as much as 17.38 per cent to Rs 898 against the issue price.

(With inputs from Reuters)