IndiGo and SpiceJet stocks experienced a 3% surge following the news that domestic air traffic in India exceeded 500,000 passengers in a single day for the first time. This milestone indicates a strong recovery in the aviation sector, with air traffic growth reaching 10% in October and 11% in November.

Goldman Sachs has reiterated its "buy" rating on IndiGo, with a target price of Rs 4,800 per share. IndiGo"s passenger load factor (PLF) has improved to 90%, compared to 85.6% during the same period last year, demonstrating strong demand and operational efficiency in the competitive market.

Overall, the surge in domestic air traffic and the positive performance of IndiGo and SpiceJet stocks reflect the strong recovery and growth in the aviation sector. This is a promising sign for the industry, indicating increased demand and operational efficiency.