Coronavirus impact: Stay away from aviation stocks for now, say analysts

Analysts remain cautious on, both, SpiceJet and IndiGo due to weak fundamentals and advise investors to avoid the stock. The coronavirus outbreak, they say, adds to the concerns.

The contagion effect of the coronavirus (Covid-19) could soon bite the Indian aviation sector that is already dealing with a modest air-traffic growth due to the on-going economic slowdown. While the sector has seen limited impact thus far, failure to curb the virus till April could dent sentiment, experts say.

Kapil Kaul, chief executive officer of CAPA’s South Asia unit says that the demand to East Asia and Southeast Asia could be affected, and outbound travel from April onwards will have to be watched, depending upon the severity of the situation in the next few weeks. So far, Indian carriers