InterGlobe Aviation, India’s largest airline operator, has been experiencing volatility in its stock prices over the past few months despite better business fundamentals and an advantage in the sector due to a revival in passenger traffic. The decision of one of its promoters, Rakesh Gangwal, to reduce stakes in the airline in the next five years has hindered any significant appreciation in the airline’s stock. Analysts suggest that the oversupply of shares due to the stake dilution is obstructing the stock’s appreciation, and it would require a constant supply of earnings-enhancing information to trigger interest in the stock.
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