Indigo falls and Spicejet takes off

It is so interesting – the top loser on the BSE since opening bell is Indigo as its promoter feud gets ugly and Spicejet being the direct gainer is the top gainer. The aviation sector is so fragile in India currently that any crease sends alarm bells ringing.

The ongoing spat between Rakesh Gangwal and Rahul Bhatia has become ugly. Yesterday, the stock exchanges received a Press Release, which is a letter written by Gangwal to SEBI and Modi, FM and all important ministries, alleging corporate governance issues at Indigo.

The long letter goes on to point in detail various events which show major governance lapses. Gangwal says that he wants to hold an EGM but the Board is not allowing him to do so.

For a complete read of this letter - https://www.bseindia.com/xml-data/corpfiling/AttachLive/83d22bb6-ff0b-467a-b3ac-ce68531b83e0.pdf

Naturally, Indigo is a major loser today, going down over 17.5% to Rs.1291. It has recovered a bit to Rs.1369 levels but nevertheless remains as top loser.

On the other hand, Spicejet in the sector suddenly looks like the safest bet today and the stock rose almost 9.5% to Rs.128.25.