After opening the day in red, share markets in India have continued the downtrend and are presently trading below the dotted line. Sectoral indices are trading mixed with stocks in the energy sector and stocks in the realty sector trading in red. While stocks in the consumer durables sector are trading in green.
The BSE Sensex is up by 310 points (down 0.9%) and the NSE Nifty is trading down by 100 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading down by 0.4%, while the BSE Small Cap index is trading down by 0.2%. The rupee is trading at 64.88 to the US$.
The company’s shares witnessed selling pressure after the aviation regulator, Directorate General of Civil Aviation (DGCA) ordered the grounding of 8 Indigo and 3 GoAir planes.
This has led to the companies canceling flights. The grounding of planes due to engine malfunction have led IndiGo and GoAir to cancel around 620 flights this month. IndiGo has decided to cancel around 480; the rest are of Go Air. The airlines will give passengers an option to choose an alternate flight or get a full refund.
On Monday, DGCA had ordered the companies to ground A320 Neo aircraft fitted with Pratt & Whitney engines, citing safety concerns.
The DGCA order follows reports of three separate incidents involving mid-air engine shutdowns for the same type of aircraft.
The problem stems from a component that can show early signs of wear and is located in an area that must withstand high pressure.
IndiGo controls 39.6% share of the domestic market, with 153 planes and over 1,000 daily flights to 49 cities.
Indian Aviation Spreading its Wings
Air travel has recorded double-digit growth for 40 consecutive months, thanks to low fares, the addition of new flights/destinations, and overall growth in the economy.