IndiGo Grounded: Shares Plummet Amid Flight Cancellation Chaos

InterGlobe Aviation, the company behind IndiGo, saw its shares drop nearly 9% as flight disruptions hit day seven. Market valuation suffered a loss of Rs 17,884.76 crore. The Indian government is investigating the cancellations, with regulatory constraints cited as the primary cause of the operational chaos.

Shares of InterGlobe Aviation, the parent company of IndiGo, plunged almost 9% on Monday, causing the company to lose Rs 17,884.76 crore in market valuation. The airline is grappling with extensive disruptions as its flight operations flounder into the seventh consecutive day.

Trading on the National Stock Exchange (NSE) saw the stock settle at Rs 4,907.50, reflecting an 8.62% nosedive. Similarly, on the Bombay Stock Exchange (BSE), shares closed at Rs 4,926.55, representing an 8.28% decline; intraday lows approached a 10% dip.

The turbulence dragged InterGlobe Aviation's market cap below Rs 2 lakh crore. Concurrently, the broader markets fell, with the BSE Sensex down by 609.68 points and the NSE Nifty by 225.90 points. Indigo's widespread flight cancellations have triggered government scrutiny, with an investigation currently underway.

(With inputs from agencies.)