IndiGo share price surges 7%, amongst top Nifty gainers as crude oil prices slump 8%; stock rises for 4th straight day

Shares of InterGlobe Aviation, the parent company of IndiGo, jumped over 7% on Thursday, 5 November, emerging as the top gainer on the Nifty 50. The rally was driven by a sharp decline in global crude oil prices, which boosted sentiment towards airline stocks. The stock extended its winning streak to a fifth consecutive session, gaining 17.5% over the period.

Brent crude prices fell over 8% in the previous session to slip below $94 a barrel, following signals from the US and Iran that they were willing to pursue peace talks. Lower crude prices are positive for airlines, as aviation turbine fuel (ATF) accounts for a significant share of their operating costs.

Oil prices extended their decline for a fourth consecutive session on Thursday, amid expectations that the losses suffered by US President Donald Trump's Republican Party in the Congressional elections could reduce the risk of further escalation in the US-Israeli war on Iran.

According to a Reuters report, Brent crude futures fell 97 cents, or 1.03%, to $93.65 a barrel as of 0211 GMT, while US West Texas Intermediate (WTI) crude futures declined $1.14, or 1.29%, to $86.98 a barrel.

shaBoth benchmarks had plunged more than 8% in the previous session, settling at their lowest levels since 31 August.

Adding to the developments around the airline, IndiGo is reportedly in discussions to purchase 100 regional jets from Brazilian aircraft manufacturer Embraer, with an option to acquire around 50 additional aircraft, according to a Reuters report citing three people familiar with the matter.

If finalised, the deal could rank among the largest orders placed with the Brazilian planemaker. However, the discussions are at an early stage, and an agreement is not guaranteed. The aircraft model has not yet been finalised, and the order size could change, the sources told Reuters on condition of anonymity.

Deliveries, if the deal goes through, are likely to begin no earlier than 2030, two of the people said, as per Reuters report.

The recent gains in IndiGo shares also follow a positive market reaction to the Centre's notification of new airfare pricing regulations under Rule 192 of the Bharatiya Vayuyan Niyam, 2026.

Under the new regulations, airlines can determine their own airfares based on operating costs, while remaining obligated to submit fare details to the Directorate General of Civil Aviation (DGCA). The move provides airlines with greater flexibility in pricing their services.

Meanwhile, IndiGo reported a narrowing of its consolidated net loss to ₹1,879.1 crore in the September quarter, compared with a loss of ₹2,582.1 crore in the corresponding quarter last year.

The airline's profitability continued to face pressure from higher fuel costs and rupee depreciation. However, Chief Executive Officer Willie Walsh said the carrier has several options to manage rising operating expenses.

India's largest airline said it would remain focused on short-haul operations and adopt a prudent approach to capacity amid the challenges facing the aviation industry.

InterGlobe Aviation's total income increased to ₹24,311.9 crore in the second quarter of FY27 from ₹19,599.5 crore in the year-ago period, according to its regulatory filing.

However, total expenses also rose sharply to ₹26,188.4 crore during the quarter. Aircraft fuel expenses surged 67.2% year-on-year to ₹9,966.8 crore, highlighting the impact of higher fuel costs on the airline's profitability.

IndiGo share price today opened at an intraday high of ₹5,485.40 apiece on the BSE, the stock touched an intraday low of ₹5,363.55 per share.

Gaurav Arora, Head of Research at SAHI, said the stock has rallied more than 20% from its 23 October low of around ₹4,450 in less than two weeks. During this upmove, it has reclaimed both its 50-day and 200-day moving averages, which are positioned close to each other around ₹4,900–4,950, signalling an improvement in the near-term technical outlook.

He noted that the stock is now approaching the ₹5,400–5,500 zone, which acted as a strong resistance between June and August. This level will be a crucial hurdle for the stock. Much of the recent rally has been driven by softer crude oil prices, as elevated fuel costs were the primary reason behind the company's Q2 FY27 loss, making the stock particularly sensitive to movements in crude prices.

According to Arora, a decisive close above ₹5,500 could attract further buying interest and push the stock towards ₹5,900. However, failure to cross this resistance could lead to a pullback towards ₹5,000–5,050. This zone, which marked the breakout level earlier this week, is now an important support to watch.

Dhanya Nagasundaram works as a Content Producer at LiveMint, specializing in news related to financial markets, stocks, and business. With over eight years of experience in journalism and content creation, she has honed her skills in data-driven reporting and market analysis. Her focus is on monitoring stock trends, initial public offerings (IPOs), corporate news, policy shifts, and larger economic trends that affect investors and market players. <br><br> At LiveMint, Dhanya consistently writes and produces articles that make complex financial topics accessible to readers. She keeps a close eye on equity markets, commodities, and macroeconomic indicators, assisting audiences in comprehending how global and domestic events influence investment perspectives. Her stories frequently underscore emerging trends within sectors, the IPO market, company earnings results, and market strategies pertinent to both retail and institutional investors. <br><br> Before her tenure at LiveMint, Dhanya accumulated a wealth of professional experience at various companies, including MintGenie, Informist, Cogenics, Chary Publications, KPMG, and the Royal Bank of Scotland. These positions allowed her to establish a solid foundation in financial research, reporting, and content creation. <br><br> Throughout her career, she has explored numerous subjects such as trading strategies, commodities, IPOs, wealth generation, corporate profits, and macroeconomic indicators. Her background in both financial journalism and corporate settings has given her the ability to tackle stories with analytical rigor while ensuring clarity for her audience. Through her contributions, Dhanya strives to deliver insightful, trustworthy, and investor-centric financial content.

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HomeMarketsStock MarketsUS midterm elections results impact on IndiGo shares: Interglobe Aviation is flying over 7%, amongst top Nifty gainers

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