Why is IndiGo share price skyrocketing despite bloodbath in Indian stock market?

Indian low-cost carrier Interglobe Aviation (IndiGo) shares have skyrocketed despite the stock market bloodbath over the last market sessions. Experts analyse a positive outlook for the aviation stock for the upcoming market sessions. 

The Indian stock market benchmark indices tanked over 800 points on Monday, February 24, amid weak global cues and rising concerns over the trade war between the United States and other major economies. The Nifty 50 index was trading 1.06% lower towards the market closing session on Monday at 22,553.35 points, compared to 22,795.90 points at the previous market close.

The BSE Sensex index lost 1.14% at 74,454.41 points, compared to 75,311.06 points at the previous stock market close. 

IndiGo shares expert outlook

Dr Ravi Singh, SVP of Retail Research at Religare Broking, noted that the stock had gained almost 10% in the last six market sessions and also mentioned that the company’s January to March quarter passenger demand is expected to be “reasonable” due to the heavy bookings for the Maha Kumbh event held in Paryagraj, Uttar Pradesh.

“IndiGo share price has gained nearly 10% in the last six sessions and gave a breakout above its resistance of 4,500 on the daily chart as global broking firm Citi showed a positive outlook for the company. Citi has given a positive outlook for the stock and mentioned in its report that the air traffic demand is rising, supported by IndiGo’s higher passenger load factors (PLFs); demand is expected to remain reasonable in Q4FY25, driven majorly by the Maha Kumbh event held in Paryagraj, Uttar Pradesh which has increased traffic to major airports in Uttar Pradesh,” said Singh.

IndiGo shares have gained nearly 13% since the beginning of the Maha Kumbh Mela. The Maha Kumbh Mela began on January 12, 2025, and will be over on Wednesday, February 26, 2025. 

Palak Devadiga, Research Analyst at StoxBox, highlighted that the surge in passenger demand is expected to drive IndiGo’s revenue growth for the fourth quarter of the financial year 2024-25 as the brand establishes strong India market dominance. 

“The rising demand for air travel, driven in part by a surge in passenger traffic to Uttar Pradesh airports due to the Maha Kumbh, is expected to drive IndiGo’s revenue growth. The company’s capacity expansion, amid operational constraints faced by its competitors, is beneficial for its yields. Furthermore, the higher cost structure of rival airlines enhances IndiGo’s competitive advantage, reinforcing its strong market position. The company is expected to deliver a strong Q4FY25 growth driven by the increased demand during the quarter. IndiGo’s aggressive capacity expansion and fleet addition position it well for long-term growth,” said Devadiga. 

Indigo shares to buy?

Sumeet Bagadia, the Executive Director at Choice Broking also noted the six-session rise of IndiGo shares and said that the stock has given a fresh breakout at the 5,225 level and has signalled a upside movement in the scrip.

“IndiGo share price has been rising for the last six straight sessions and the aviation stock is expected to remain on an uptrend. IndiGo share price today gave a fresh breakout at ₹5,225 apiece level on the technical chart, which signals further upside movement in the scrip,” said Bagadia.

“So, my suggestion to IndiGo shareholders is to hold the scrip for the near-term target of ₹4,750 to ₹4,800 per share. However, one must maintain a strict stop loss of ₹4,450. Fresh investors can also buy IndiGo shares at the current market price for the short-term target of ₹4,800, keeping a stop loss at ₹4,450 apiece,” he said.

InterGlobe Aviation Ltd. (INDIGO): Near-term Target at ₹4,750 to ₹4,800; Stop Loss at ₹4,450.

For fresh stock investors in IndiGo: Buy at CMP ₹4,521; Short-term Target at ₹4,800; Stop Loss at ₹4,450.

IndiGo Share Price

InterGlobe Aviation shares closed 0.25 per cent higher at ₹4,521 after Monday’s stock market session, compared to ₹4,509.60 at the previous market close.

IndiGo shares have given stock market investors over 240% returns in the last five years and 42% returns in the last one-year period. The stock has been trading 8.6% higher in the last one-month period. However, on a year-to-date (YTD) basis, the stock has lost only 1.53% in 2025.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.