Interglobe Aviation, the parent company of IndiGo Airlines, recently made headlines as its share price soared to an all-time high of ₹2,499.95 apiece on the Bombay Stock Exchange (BSE). This surge came after the announcement of a massive aircraft order at the Paris Air Show. The aviation giant signed an agreement with Airbus SE, a prominent European aircraft manufacturer, to acquire 500 aircraft, amounting to an estimated $50 billion. Although the stock later retreated from its initial gains, this development showcases the company’s ambitions for future growth and expansion.
The Initial Surge and Subsequent Performance
Interglobe Aviation’s shares opened 2.8% higher on the BSE, reaching an intraday high of ₹2,499.95 apiece. However, as the trading day progressed, the stock experienced a dip and touched an intraday low of ₹2,440 per share. Despite this fluctuation, the stock closed 0.11% higher at ₹2,432.70 apiece.
Expert Analysis on the Stock’s Performance
According to Rajesh Bhosale, an Equity Technical and Derivative Analyst at Angel One, although the stock witnessed a gap-up opening, the gains were later relinquished. He maintains a positive bias for the stock and advises investors to view any dips as buying opportunities. Bhosale identifies ₹2,400 as a crucial support level and ₹2,580 as a resistance level.
Gaurav Bissa, Vice President of InCred Equities, highlights the stock’s symmetrical triangle pattern breakout on the weekly charts, which propelled it towards ₹2,400 levels. However, after reaching fresh lifetime highs, the stock triggered a bearish harmonic alt shark pattern, indicating a potential reversal. Bissa suggests that if the stock closes below ₹2,350 levels, it may fall to ₹2,150 levels. He also recommends caution for fresh buying at current prices due to the risk-reward ratio.
Strategic Partnership with Airbus
Interglobe Aviation’s order of 500 aircraft from Airbus strengthens its strategic partnership with the European manufacturer. The deal guarantees a consistent supply of planes from the A320NEO family between 2030 and 2035. The A320NEO, A321NEO, and A321XLR aircraft will contribute to IndiGo’s existing order book of 1,000 planes, further fueling the low-cost carrier’s expansion plans over the next decade.
According to the company’s exchange filing, this new order solidifies the depth and breadth of the partnership between IndiGo and Airbus. Since its inception in 2006, IndiGo has placed a remarkable total of 1,330 aircraft orders with Airbus. Pieter Elbers, CEO of IndiGo, expresses the significance of this historic order, emphasizing the company’s mission to boost economic growth, social cohesion, and mobility in India. He takes pride in IndiGo’s position as India’s preferred airline for connectivity and highlights the airline’s commitment to India’s growth and its strategic alliance with Airbus.
Interglobe Aviation’s recent achievements in the Indian aviation industry mark a significant milestone for the company. The surge in its share price, coupled with the monumental order of 500 Airbus aircraft, reflects its determination to maintain its position as a leader in the industry. IndiGo’s expansion plans and strategic partnership with Airbus bode well for its future growth and reaffirm its commitment to enhancing India’s connectivity and overall development.
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What is the significance of Interglobe Aviation’s share price touching an all-time high?
Interglobe Aviation reaching an all-time high indicates investors’ confidence in the company’s prospects and growth potential.
How did the stock perform after the initial surge?
Although the stock retreated from its early gains, it closed marginally higher than its opening price.
What impact did the aircraft order have on the company’s stock price?
The announcement of the 500-aircraft order positively influenced the stock price, leading to an initial surge in value.
How does the partnership with Airbus benefit Interglobe Aviation?
The partnership ensures a consistent supply of aircraft over the next decade, supporting the company’s expansion plans.
How many aircraft has IndiGo ordered from Airbus so far?
IndiGo has ordered a total of 1,330 aircraft from Airbus since its establishment in 2006.