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Shares of hotels, airlines and cinemas hit as new variant of Covid triggers lockdown fears

 | Business Top stories

Shares of hotels, airlines and cinemas hit as new variant of Covid triggers lockdown fears

| Business Top stories | abc News


Most tourism-related stocks have succumbed to negative territory, including hotel stocks such as Chalet, Indian Hotels, Lemon Tree, Kemat Hotels, Oriental Hotels, Royal Orchid, Mahindra Holiday, EIH, Taj GVK and Country Club, which are on the decline from about 2 to 8.6%.

Restaurant stocks also faced selling pressure, including Barbeque Nation, Coffee Day, Burger King and Jubilant Food, trading between 2.1% and 5% lower.

Cinema stocks such as PVR and Inox Leisure fell 8.8% and 8.1% respectively.

Shares of airlines InterGlobe Aviation (IndiGo) and SpiceJet fell 7.9% and 4.6% respectively.

Scientists said the COVID variant, detected in South Africa, may be able to evade immune responses, according to a Reuters report. Little is known about the new variant, but scientists told reporters there was a “very unusual constellation” of mutations, he said.

Most analysts say the news has raised concerns about the impact of COVID-related restrictions on global businesses.

“A new variant of COVID, believed to be deadlier, has alerted global markets and institutions … WHO calls for emergency meeting and other countries call for flight bans,” Vinod Nair, head of research at Geojit Financial Services, Recounted CNBCTV18.com.

The World Health Organization will hold a special meeting on Friday to discuss whether the heavily mutated strain will become an interesting variant or a variant of concern.

“This is bound to have an impact on domestic and international tourism, which is expected to rebound in this quarter and into 2022. This will result in a sentimental setback for the tourism and entertainment sectors in anticipation of cautious public behavior and government restrictions. “, did he declare.

The latest massive selloff triggered by COVID is damaging investor sentiment after a near one-sided rally in stocks in recent months that took benchmarks to all-time highs.

“There are fears that this new variant could spread to other countries, which could again derail the global economy. There is already uncertainty about when the US Fed will start raising interest rates. The markets could therefore continue to come under pressure and actively monitor the global COVID situation, ”said Hemang Jani, head of equity strategy and senior vice president of the Brokerage and Distribution group at Motilal Oswal Financial Services.

Many foreign brokerage firms have recently warned against costly valuations on Dalal Street and advised their international clients to record profits.

(Edited by : Sandeep Singh)

Shares of hotels, airlines and cinemas hit as new variant of Covid triggers lockdown fears

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