{"id":24827,"date":"2026-04-22T15:36:33","date_gmt":"2026-04-22T10:06:33","guid":{"rendered":"https:\/\/trending.niftytrader.in\/?p=24827"},"modified":"2026-04-22T15:36:58","modified_gmt":"2026-04-22T10:06:58","slug":"spicejets-2-day-upper-circuit-rally","status":"publish","type":"post","link":"https:\/\/www.niftytrader.in\/markets\/spicejets-2-day-upper-circuit-rally\/","title":{"rendered":"SpiceJet\u2019s 2-Day Upper Circuit Rally Sparks Buzz: Is Government Relief About to Change the Game for Airline Stocks?"},"content":{"rendered":"<p data-start=\"467\" data-end=\"812\">India\u2019s aviation stocks turned into a battleground of expectations on April 22, as <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">SpiceJet Ltd<\/span><\/span> extended its explosive rally for the second straight session while <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">InterGlobe Aviation Ltd<\/span><\/span>, which operates <span class=\"hover:entity-accent entity-underline inline cursor-pointer align-baseline\"><span class=\"whitespace-normal\">IndiGo<\/span><\/span>, showed signs of stability but lacked aggressive upside momentum.<\/p>\n<p data-start=\"814\" data-end=\"926\">The trigger wasn\u2019t earnings. It wasn\u2019t guidance.<br data-start=\"862\" data-end=\"865\" \/>It was something far more powerful \u2014 policy expectations.<\/p>\n<p data-start=\"1327\" data-end=\"1520\">Also Check :<\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><a href=\"https:\/\/www.niftytrader.in\/nifty50-contributors\">Nifty 50<\/a><\/li>\n<li><a href=\"https:\/\/www.niftytrader.in\/nifty-bank-contributors\">Bank Nifty<\/a><\/li>\n<li><a href=\"https:\/\/www.niftytrader.in\/stocks-price\/bse\">Sensex<\/a><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 data-section-id=\"1qm137w\" data-start=\"933\" data-end=\"1017\">A Momentum Surge With a Contradiction: Why SpiceJet Is Rising Despite Deep Losses<\/h2>\n<p data-start=\"1019\" data-end=\"1148\">SpiceJet shares were locked in the 5% upper circuit at \u20b914.62 in afternoon trade, marking back-to-back sessions of buying frenzy.<\/p>\n<p data-start=\"1150\" data-end=\"1192\">The numbers look striking at first glance:<\/p>\n<ul data-start=\"1193\" data-end=\"1272\">\n<li data-section-id=\"o67lfo\" data-start=\"1193\" data-end=\"1225\">Up ~50.1% in April alone<\/li>\n<li data-section-id=\"1ot6ot6\" data-start=\"1226\" data-end=\"1272\">Still down 70.6% over the past one year<\/li>\n<\/ul>\n<p data-start=\"1274\" data-end=\"1309\">This contrast tells a deeper story.<\/p>\n<p data-start=\"1311\" data-end=\"1490\">The rally is being driven less by financial recovery and more by anticipation of external support, particularly relief on fuel costs \u2014 the single biggest expense for airlines.<\/p>\n<p data-start=\"1492\" data-end=\"1651\">A market participant tracking aviation stocks said,<br data-start=\"1543\" data-end=\"1546\" \/><em data-start=\"1546\" data-end=\"1651\">\u201cThis is a classic pre-policy rally. The market is pricing in relief before it\u2019s officially announced.\u201d<\/em><\/p>\n<p data-start=\"1492\" data-end=\"1651\"><span style=\"color: #0000ff;\">Read More<\/span> : <a href=\"https:\/\/www.niftytrader.in\/markets\/tech-mahindra-falls-2-5-despite-rs\/\">Tech Mahindra Falls 2.5% Despite Rs.1,354 Crore Q4 Profit, Rs.36 Dividend Announced<\/a><\/p>\n<h2 data-section-id=\"1jsld9e\" data-start=\"1658\" data-end=\"1732\">IndiGo Holds Ground \u2014 But Why Smart Money Isn\u2019t Chasing It Aggressively<\/h2>\n<p data-start=\"1734\" data-end=\"1870\">While SpiceJet saw aggressive buying, InterGlobe Aviation slipped 0.37% to \u20b94,675.8, though it recovered nearly 1.1% from intraday lows.<\/p>\n<p data-start=\"1872\" data-end=\"1905\">This signals something important.<\/p>\n<p data-start=\"1907\" data-end=\"1977\">Investors are not exiting IndiGo \u2014 they are simply not chasing it.<\/p>\n<p data-start=\"1979\" data-end=\"1983\">Why?<\/p>\n<p data-start=\"1985\" data-end=\"2042\">Because IndiGo represents stability, not speculation.<\/p>\n<ul data-start=\"2044\" data-end=\"2144\">\n<li data-section-id=\"1q2e2px\" data-start=\"2044\" data-end=\"2070\">Stronger balance sheet<\/li>\n<li data-section-id=\"sfvhpc\" data-start=\"2071\" data-end=\"2097\">Better cost management<\/li>\n<li data-section-id=\"sdp3in\" data-start=\"2098\" data-end=\"2144\">Less dependency on immediate policy relief<\/li>\n<\/ul>\n<p data-start=\"2146\" data-end=\"2268\">An aviation analyst noted,<br data-start=\"2172\" data-end=\"2175\" \/><em data-start=\"2175\" data-end=\"2268\">\u201cIndiGo doesn\u2019t need rescue. SpiceJet does. That\u2019s where the speculative money is flowing.\u201d<\/em><\/p>\n<h2 data-section-id=\"1th0zfa\" data-start=\"2275\" data-end=\"2346\">The Real Trigger: ATF VAT Cut Hopes Shift Market Sentiment Overnight<\/h2>\n<p data-start=\"2348\" data-end=\"2472\">The entire aviation rally is anchored to one key development \u2014 possible reduction in VAT on aviation turbine fuel (ATF).<\/p>\n<p data-start=\"2474\" data-end=\"2578\">Reports indicate that the Civil Aviation Ministry is in talks with state governments to ease fuel taxes.<\/p>\n<p data-start=\"2580\" data-end=\"2602\">Current VAT structure:<\/p>\n<ul data-start=\"2603\" data-end=\"2675\">\n<li data-section-id=\"1avrysi\" data-start=\"2603\" data-end=\"2618\">Delhi: 25%<\/li>\n<li data-section-id=\"1hwo941\" data-start=\"2619\" data-end=\"2639\">Tamil Nadu: 29%<\/li>\n<li data-section-id=\"136waxm\" data-start=\"2640\" data-end=\"2675\">Maharashtra &amp; West Bengal: 18%<\/li>\n<\/ul>\n<p data-start=\"2677\" data-end=\"2708\">Two proposals under discussion:<\/p>\n<ul data-start=\"2709\" data-end=\"2825\">\n<li data-section-id=\"1aqx69y\" data-start=\"2709\" data-end=\"2747\">Temporary VAT cut (3\u20136 months)<\/li>\n<li data-section-id=\"az5z5c\" data-start=\"2748\" data-end=\"2825\">Airport-specific tax relief for high-traffic hubs like Delhi and Mumbai<\/li>\n<\/ul>\n<p data-start=\"2827\" data-end=\"2903\">These are not small tweaks \u2014 they could materially change airline economics.<\/p>\n<h2 data-section-id=\"1d15zk8\" data-start=\"2910\" data-end=\"2970\">Why This Policy Move Could Reprice Airline Stocks Quickly<\/h2>\n<p data-start=\"2972\" data-end=\"3048\">Fuel costs account for nearly 30\u201340% of an airline\u2019s operating expenses.<\/p>\n<p data-start=\"3050\" data-end=\"3083\">Any reduction in ATF taxes could:<\/p>\n<ul data-start=\"3084\" data-end=\"3229\">\n<li data-section-id=\"mruh5x\" data-start=\"3084\" data-end=\"3129\">Improve profit margins almost immediately<\/li>\n<li data-section-id=\"wp1j7u\" data-start=\"3130\" data-end=\"3174\">Reduce cash burn for struggling airlines<\/li>\n<li data-section-id=\"d8q7zx\" data-start=\"3175\" data-end=\"3229\">Strengthen survival outlook for debt-heavy players<\/li>\n<\/ul>\n<p data-start=\"3231\" data-end=\"3262\">For SpiceJet, this is critical.<\/p>\n<p data-start=\"3264\" data-end=\"3294\">The company has been battling:<\/p>\n<ul data-start=\"3295\" data-end=\"3355\">\n<li data-section-id=\"u987kh\" data-start=\"3295\" data-end=\"3308\">High debt<\/li>\n<li data-section-id=\"1ali7yq\" data-start=\"3309\" data-end=\"3327\">Legal disputes<\/li>\n<li data-section-id=\"rkf0hy\" data-start=\"3328\" data-end=\"3355\">Operational constraints<\/li>\n<\/ul>\n<p data-start=\"3357\" data-end=\"3457\">A VAT cut could act as a short-term lifeline, which explains the sharp surge in its stock price.<\/p>\n<h2 data-section-id=\"1bijht\" data-start=\"3464\" data-end=\"3517\">Here\u2019s What Happened Today and Why Traders Reacted<\/h2>\n<p data-start=\"3519\" data-end=\"3577\">Today\u2019s rally wasn\u2019t random \u2014 it followed a clear pattern:<\/p>\n<ul data-start=\"3579\" data-end=\"3892\">\n<li data-section-id=\"1nji523\" data-start=\"3579\" data-end=\"3644\">News of potential VAT cuts triggered buying in airline stocks<\/li>\n<li data-section-id=\"z1ysiv\" data-start=\"3645\" data-end=\"3713\">SpiceJet saw back-to-back upper circuits due to momentum trading<\/li>\n<li data-section-id=\"ou22iq\" data-start=\"3714\" data-end=\"3768\">Retail and short-term traders entered aggressively<\/li>\n<li data-section-id=\"1kj9192\" data-start=\"3769\" data-end=\"3819\">IndiGo saw dip-buying but no speculative surge<\/li>\n<li data-section-id=\"4p9igg\" data-start=\"3820\" data-end=\"3892\">Broader aviation sentiment turned positive despite weak fundamentals<\/li>\n<\/ul>\n<p data-start=\"3894\" data-end=\"3987\">In simple terms:<br data-start=\"3910\" data-end=\"3913\" \/>Traders reacted to what <em data-start=\"3939\" data-end=\"3953\">could happen<\/em>, not what has already happened.<\/p>\n<h2 data-section-id=\"1g7ung7\" data-start=\"3994\" data-end=\"4046\">What This Means for Traders: Opportunity or Trap?<\/h2>\n<p data-start=\"4048\" data-end=\"4117\">For short-term traders, SpiceJet has become a high-momentum play.<\/p>\n<p data-start=\"4119\" data-end=\"4139\">But there\u2019s a catch.<\/p>\n<p data-start=\"4141\" data-end=\"4158\">Such rallies are:<\/p>\n<ul data-start=\"4159\" data-end=\"4210\">\n<li data-section-id=\"1y9hbfs\" data-start=\"4159\" data-end=\"4167\">Fast<\/li>\n<li data-section-id=\"1ujhng0\" data-start=\"4168\" data-end=\"4188\">Sentiment-driven<\/li>\n<li data-section-id=\"18w7pjo\" data-start=\"4189\" data-end=\"4210\">Highly reversible<\/li>\n<\/ul>\n<p data-start=\"4212\" data-end=\"4300\">If policy announcements get delayed or diluted, the same stock could see sharp downside.<\/p>\n<p data-start=\"4302\" data-end=\"4423\">A derivatives trader said,<br data-start=\"4328\" data-end=\"4331\" \/><em data-start=\"4331\" data-end=\"4423\">\u201cMomentum is strong, but it\u2019s fragile. One negative update can unwind this rally quickly.\u201d<\/em><\/p>\n<h2 data-section-id=\"15x5p1x\" data-start=\"4430\" data-end=\"4491\">What Long-Term Investors Should Watch Before Making a Move<\/h2>\n<p data-start=\"4493\" data-end=\"4577\">For investors, this is not yet a confirmation signal \u2014 it\u2019s an early indication.<\/p>\n<p data-start=\"4579\" data-end=\"4601\">Key things to monitor:<\/p>\n<ul data-start=\"4602\" data-end=\"4780\">\n<li data-section-id=\"1kykxyg\" data-start=\"4602\" data-end=\"4643\">Official announcement on ATF VAT cuts<\/li>\n<li data-section-id=\"q1a7j8\" data-start=\"4644\" data-end=\"4685\">Duration and scope of relief measures<\/li>\n<li data-section-id=\"wwy6g9\" data-start=\"4686\" data-end=\"4729\">Impact on quarterly margins of airlines<\/li>\n<li data-section-id=\"nefqi9\" data-start=\"4730\" data-end=\"4780\">Debt restructuring progress for weaker players<\/li>\n<\/ul>\n<p data-start=\"4782\" data-end=\"4892\">IndiGo may continue to attract defensive capital, while SpiceJet remains a high-risk, high-reward bet.<\/p>\n<h2 data-section-id=\"1cok0ov\" data-start=\"4899\" data-end=\"4961\">Market Outlook: Will Aviation Stocks See Another Rally Leg?<\/h2>\n<p data-start=\"4963\" data-end=\"4989\">If VAT cuts are confirmed:<\/p>\n<ul data-start=\"4990\" data-end=\"5121\">\n<li data-section-id=\"1tm57bo\" data-start=\"4990\" data-end=\"5042\">Airline stocks could see another sharp rally<\/li>\n<li data-section-id=\"rnwgz7\" data-start=\"5043\" data-end=\"5083\">Short covering may accelerate upside<\/li>\n<li data-section-id=\"ndtpfg\" data-start=\"5084\" data-end=\"5121\">Sector-wide re-rating is possible<\/li>\n<\/ul>\n<p data-start=\"5123\" data-end=\"5130\">If not:<\/p>\n<ul data-start=\"5131\" data-end=\"5253\">\n<li data-section-id=\"h43b61\" data-start=\"5131\" data-end=\"5184\">Momentum stocks like SpiceJet may correct sharply<\/li>\n<li data-section-id=\"un98b\" data-start=\"5185\" data-end=\"5219\">Profit booking could intensify<\/li>\n<li data-section-id=\"1npvtq2\" data-start=\"5220\" data-end=\"5253\">Sentiment may reverse quickly<\/li>\n<\/ul>\n<p data-start=\"5255\" data-end=\"5353\">Right now, the aviation sector is trading on hope, policy, and positioning \u2014 not fundamentals.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s aviation stocks turned into a battleground of expectations on April 22, as SpiceJet Ltd extended its explosive rally for the second straight session while InterGlobe Aviation Ltd, which operates IndiGo, showed signs of stability but lacked aggressive upside momentum. The trigger wasn\u2019t earnings. It wasn\u2019t guidance.It was something far more powerful \u2014 policy expectations. [&hellip;]<\/p>\n","protected":false},"author":4,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"ppma_author":[1331],"class_list":{"0":"post-24827","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-political-news"}," _eael_post_view_count":0,"authors":[{"term_id":1331,"user_id":4,"is_guest":0,"slug":"sourabh","display_name":"Sourabh Sharma","avatar_url":{"url":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png","url2x":"https:\/\/trending.niftytrader.in\/wp-content\/uploads\/2025\/11\/Sourabh-Sharma.png"},"0":null,"1":"","2":"","3":"","4":"","5":"","6":"","7":""}],"_links":{"self":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/24827","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/comments?post=24827"}],"version-history":[{"count":1,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/24827\/revisions"}],"predecessor-version":[{"id":24833,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/posts\/24827\/revisions\/24833"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media\/24832"}],"wp:attachment":[{"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/media?parent=24827"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/categories?post=24827"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/tags?post=24827"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.niftytrader.in\/markets\/wp-json\/wp\/v2\/ppma_author?post=24827"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}