Omicron Effect In Market: Hotel, Airlines, Multiplexes & Tourism Sector Hit Hard
Omicron Effect: Stocks of market sectors like airlines, hotels, travel portals and multiplexes are falling due to the new variant of Corona virus.
New Delhi: The stock market is witnessing volatility as the new variant of Coronavirus has been detected. Stocks of market sectors like airlines, hotels, travel portals, and multiplexes are showing a decline. Telecom and pharmaceutical sector too have not registered profit.
Fear Of Another Lockdown
Investors who invested in these companies feel that if the outbreak of Omnicron variant increases, many countries may again impose lockdown and India too may not remain immune to it. This will impact airlines, hotels, travel portals, and the multiplex sector as they have not yet recovered from the losses incurred during lockdown in both the first and second waves of Covid-19.
India allowed the arrival of international flights from December 15 except for 14 countries. But on Saturday, Prime Minister Narendra Modi during the meeting held regarding the Omicron variant asked for a review of the decision. This is the reason that airline stocks are showing a decline.
Hotel, Airlines Shares Collapse
Shares of these sectors slumped for the second consecutive day since Friday. In the hotel sector INDIAN HOTELS was trading 3.70 per cent lower at Rs 175.75, East India Hotels 5.77 per cent down at Rs 119.95, ORIENTAL HOTELS by 2.78 per cent at Rs 34.95. If you look at the shares of the airlines sector, INTERGLOBE AVIATION (INDIGO) fell down by 2.03% to Rs 1,840, SPICEJET fell by 6.25% to trade at Rs 70.50.
Shares of online travel booking portal Easy Trip were also down and are trading 4.99 per cent lower at Rs 499.25. The railway travel online booking company IRCTC was also trading 5.47 per cent lower at Rs 778.
Shares Of Multiplex Companies Tumble
Multiplexes have just opened but PVR is trading 1.40% lower at Rs 1372 due to fear of a Omicron variant of Corona virus. INOX Leisure was trading 5.31% down at Rs 357.20.
Investors of these companies are going through a feeling of unrest. Many European countries have decided to ban flights from South Africa, while some have already banned. World Health Organization (WHO) has designated the Omnicron variant as a 'variant of concern'.
Disclaimer: The knowledge provided here is for information purposes only. It is important to mention here that investments in the market are subject to market risks. Always consult an expert before investing your money as an investor.
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