IndiGo shares slip as new airlines get green light in India
IndiGo's parent company saw its shares drop by more than 2% after the government gave No Objection Certificates (NOCs) to two new airlines—Al Hind Air and FlyExpress.
This comes right after Shankh Air got similar approval earlier this month.
Why does this matter?
India's skies have mostly been a two-player game between IndiGo and Air India, but that's changing.
NOCs are the first step for newcomers, opening the door for more competition and possibly better options (and prices) for travelers.
The move follows recent scrutiny of IndiGo's operations, with the aviation minister highlighting how fast the market is growing and promising support for regional carriers.
What's happening with IndiGo stock?
Even though IndiGo shares had been rising for five days straight, they've dropped 12% over the past month amid calls for more competition.
Investors seem to be reacting to both regulatory pressure and fresh rivals entering the scene.