Travel, hotel stocks are buzzing today. The right time to buy these stocks?


The values ​​of tourism, hospitality, travel and airlines are in turmoil during Monday’s session. Shares of Indian hotels, cottage hotels and Lemon Tree hotels jumped more than 5% in early deals. Shares of airlines like SpiceJet also rose more than 4% on BSE, with airlines now allowed to operate domestic flights at a maximum of 85% of capacity before Covid, up from 72.5% previously.

Analysts said these travel-related stocks had increased thanks to the momentum to reopen in India, in addition, airlines are allowed to operate with 85% capacity.

“India may soon open the doors to foreign tourists is another big reason for a strong recovery in hotel stocks. The overall outlook for the travel and tourism sector is very optimistic due to the changing fashion. life, government support and attractive valuations. Therefore, investors may seek investment opportunities in this space, but in the short term, we may see some correction in this space as well as the market in its together because there are global indices, ”said Santosh Meena, research director, Swastika Investmart.

Meena said the Indian hotel will remain her top choice in the hotel space because of its solid pedigree and business. He also expects IndiGo to continue to outperform as airline stocks may remain the preferred choice of institutional investors due to its leadership in the space.

Shares of IndiGo’s parent company, InterGlobe Aviation, hit a new high in Friday’s session as the gradual lifting of restrictions and increased pace of vaccinations led to an increase in domestic passenger air traffic, which could be a key trigger for airline actions.

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