Indigo soars and then crash lands

InterGlobe Aviation or Indigo as it is more popularly recognized, is down in the red today morning. From the previous close of Rs.830.75, the stock had opened higher today at Rs.848 and even went up to an intra day high at Rs.851.75 but profit booking pushed it down from these levels. It hit an intra day low at Rs.799 and is now at Rs.806, down 3%.

The fall in the stock price is more on account of profit booking at the higher levels as the news in the company was actually good. The much delayed delivery of Airbus320neos is finally happening. Airbus SAS confirmed that it will begin delivering from March 2016 and all the 24 aircrafts will be delivered over the next 13 months.

This is a relief as one did not know after the December communication where SAS said that the delivery was delayed due to industrial reasons. Indigo will now at least start getting new aircrafts from next month, much needed for its fleet expansion.