IndiGo Shares Drop 3% After Govt Orders 10% Flight Cut; Brokerages React

• IndiGo shares dropped over 3% after the Indian government ordered the airline to cut 10% of its planned flights.
• The government mandated a 10% reduction in IndiGo's flight schedule to stabilize operations following widespread cancellations.
• Mass cancellations were primarily caused by a crew shortage and new Flight Duty Time Limitation (FDTL) norms.
• Most brokerages (HSBC, Morgan Stanley, UBS, Jefferies) maintained 'Buy' ratings, acknowledging near-term challenges but seeing long-term potential.
• JM Financial issued a 'Reduce' call, forecasting potential earnings hits and structural cost increases due to regulatory actions.

Why It Matters: Govt order to cut IndiGo flights impacts investors and future operations.