IndiGo Stock Drops ₹40,000 Cr Amid Operational Woes; Analysts See Volatility

• IndiGo shares experienced a seven-day losing streak, shedding nearly ₹40,000 crore in market value.
• Operational disruptions, including mass cancellations, and new pilot rest norms contributed to the stock's decline.
• Analysts like BofA and Goldman Sachs maintain 'Buy' ratings but have trimmed earnings estimates and target prices.
• DGCA issued a show cause notice to IndiGo regarding large-scale disruptions; the airline cited multiple triggers and sought more time for analysis.
• Moody's described the ongoing disruptions as "credit negative," citing potential revenue losses from refunds and penalties.

Why It Matters: IndiGo's operational disruptions and regulatory pressure impact its stock value.