IndiGo shares rise 2% as stock set to join SENSEX, replacing Tata Motors PV: What does this mean for the aviation scrip?

The stock gained as much as 2.16% to ₹5,970 on the NSE.

Entry into BSE SENSEX

In a major boost to the aviation sector, InterGlobe Aviation will find a place in BSE's coveted 30-share benchmark index, SENSEX, from December 22, the BSE Index Services said on Saturday.

The airline company will replace Tata Motors Passenger Vehicles (TMPV).

The changes have been announced by BSE Index Services Pvt Ltd (formerly Asia Index Pvt Ltd) as a part of the reconstitution of its indices, effective at the market open on Monday, December 22.

In the BSE 100 index, IDFC First Bank Ltd will be included, replacing Adani Green Energy Ltd. Within the BSE SENSEX 50, Max Healthcare Institute Ltd will be added, and IndusInd Bank Ltd will be removed.

Meanwhile, in the BSE SENSEX Next 50 index, IndusInd Bank and IDFC First Bank will replace Max Healthcare Institute Ltd and Adani Green Energy.

What does IndiGo's entry into SENSEX mean?

Analysts tracking the aviation sector and related stocks welcomed the announcement, calling it a positive step. However, they cautioned that aviation stocks have historically faced challenges, noting that while index inclusion is encouraging, meaningful gains will materialise only when costs stabilise and margins strengthen.

Some experts added that IndiGo’s entry into the SENSEX signals the Indian aviation sector’s strong growth and increasing financial maturity. They described the move as a significant shift in market dynamics—one that broadens the index’s sectoral representation and could draw greater global capital inflows.

Analysts also noted that the stock may eventually be included in prominent global indices.

IndiGo to invest ₹7,270 crore in arm for aircraft acquisition

IndiGo on Friday said it has approved an investment of $820 million (about ₹7,270 crore) in its wholly-owned subsidiary InterGlobe Aviation Financial Services IFSC Private Limited for aircraft acquisition.

IndiGo IFSC was incorporated on October 12, 2023, under the Companies Act, 2013, as a wholly owned subsidiary of the Company in Gift City, Ahmedabad, Gujarat.

The investment, IndiGo said, will be made through a combination of equity shares and 0.01% non-cumulative optionally convertible redeemable preference shares (OCRPS) in one or more tranches, the airline said in a statement.

The funds raised by the subsidiary firm will be primarily deployed towards the acquisition of aviation assets, thereby enabling ownership of aircraft, the airline said.

IndiGo has 411 aircraft in its fleet as of November 21, according to aircraft fleet tracking website planespotter.net, with 365 in operation and the remaining 46 on the ground.

"IndiGo has historically maintained a fleet structure predominantly reliant on operating leases. In recent years, the organisation has undertaken a strategic development towards a more balanced ownership structure and diversified forms of financing. This move reflects IndiGo’s commitment to prudent capital allocation and sustainable value creation for all stakeholders," the company said in its press release.

Interglobe Aviation stock performance

Shares of the company have rallied 27% so far in 2025 (YTD), and in the past 12 months, the stock is up over 37%.

In comparison, the S&P BSE SENSEX has gained over 8.5% YTD and 6.4% in the past one year. The NSE's NIFTY50 index has advanced 9.79% YTD and 7.62% in the past 12 months.

IndiGo Q2 FY26 Results

IndiGo reported a loss of ₹2,582.10 crore in the September quarter as higher forex losses and expenses impacted the bottom line, and it expects to induct the first long-range Airbus A321 XLR aircraft in December.

The airline, which had a loss of ₹986.7 crore in the year-ago period, said hedging actions and more revenues in foreign currencies from international operations will help cushion the currency movements.

It had a profit of ₹2,176.30 crore in the June quarter.

Expanding its international network, IndiGo will be bringing in more planes on damp leases, and currently, the number of aircraft on ground (AOG) is in the 40s, with chief financial officer Gaurav M Negi, in an analysts' call, saying the number is expected to remain range-bound till the end of the year.

"We have done very well on the operational performance," IndiGo CEO Pieter Elbers said during a virtual media briefing soon after the announcement of the financial results.

According to a regulatory filing, InterGlobe Aviation, the parent of IndiGo, raked in a total income of ₹19,599.5 crore in the second quarter of the current financial year, higher than the ₹17,759 crore recorded in the same period a year ago.

What Morgan Stanley says

In its latest note on the airline stock, Morgan Stanley said it was positive on the company as capacity growth stays strong and international routes remain the key driver.

On November 11, 2025, IndiGo said it had started direct flights from the national capital to Guangzhou.

For the airline, Delhi is the second city after Kolkata to have nonstop services to the Chinese city.

The carrier commenced daily, non-stop flights between Delhi and Guangzhou on November 10, and the services will be operated with narrow-body A320 neo aircraft, according to a release on Tuesday.

With the latest addition, IndiGo now connects Delhi to 21 international destinations.