Aviation stocks drop after the crash in Ahmedabad.
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On the recent crash of Air India Flight AI171—a Boeing 787 departing Ahmedabad—240 people died, including locals close to B.J. Medical College. We still can't get over this loss, and we extend our heartfelt sympathies to all affected families and friends. However, this crash in Ahmedabad also affected Indian aviation stocks.
- IndiGo's share drops up to 6%, around ₹5,175–₹5,265.
- SpiceJet shares drop up to 3.4% and are currently trading at ₹42–₹44.
- Nifty and Sensex fell ~1.1%, with the aviation sector leading losses amid sentiment shock.
- Due to this crash, even Singapore Airlines shows the stock declines, as Singapore Airlines is holding 25% of Air India shares.
- With the Boeing 787 crash, the company's shares plunged by 5-8% amidst renewed concerns over the aircraft's safety record.
This incident created a lot of concerns, like Boeing's manufacturing practices, engine failure, and flap or landing gear malfunction.
According to the GIC Re experts, the insurance claims can reach up to $475 million, which is around ₹4,000 crore, which creates lots of pressure on the insurance sector.