Indian aviation stocks declined sharply on Friday, June 13, amid twin shocks of a fatal Air India crash and a spike in global crude oil prices driven by escalating Middle East tensions.

Shares of InterGlobe Aviation (IndiGo) dropped nearly 6% to Rs 5,175, while SpiceJet fell 5.5% to Rs 42.16 on the BSE.

Air India Dreamliner crash triggers caution

Investor sentiment soured after an Air India Boeing 787-8 Dreamliner en route to London crashed shortly after takeoff from Ahmedabad. The aircraft, carrying 232 passengers and 10 crew members, went down in a residential area, killing all 241 onboard, according to initial reports.

While the cause of the crash is still under investigation, early visuals suggest the aircraft lost altitude moments…