Ahmedabad plane crash: Aviation stocks nosedive after Air India flight crashes near airport

Ahmedabad plane crash: Airline stocks plummeted on June 12th following an Air India crash near Ahmedabad airport. A London-bound flight with 242 passengers crashed shortly after takeoff, reportedly hitting a building.

Ahmedabad plane crash: Airline stocks on Thursday (June 12) plunged sharply following reports of a plane crash near the Sardar Vallabhbhai Patel International Airport in Ahmedabad, Gujarat. The incident sent shockwaves through the market, triggering concerns over aviation safety and investor sentiment.

IndiGo shares dropped by over 3% to Rs 5,465 during afternoon trade, while SpiceJet also slipped 1.5%. Shares of Adani Enterprises, which operates the Ahmedabad airport, declined nearly 1% in the wake of the crash.

According to initial reports, a London-bound Air India flight carrying 242 passengers crashed shortly after takeoff. The aircraft is said to have gone down in a densely populated area near the airport, reportedly hitting a building. Eyewitnesses and local residents rushed to the scene to assist with rescue operations.

Footage from the crash site, showed massive plumes of smoke rising from the debris, indicating the severity of the impact.

Though official confirmation and details from authorities are still awaited, the aviation sector reacted immediately. Market analysts suggest that a tragic event like a flight crash often leads to short-term panic in aviation stocks, with fears over regulatory scrutiny, operational delays, or a potential dip in air travel demand.