New Delhi: The stock market is witnessing volatility as a new version of the coronavirus is detected. Market sectors like airlines, hotels, travel portals and multiplexes are seeing a decline in stocks. Telecom and pharmaceutical sectors have also not registered gains.
Fear of another lockdown
Investors investing in these companies feel that if the outbreak of Omnicron variants increases, then many countries may impose lockdown again and India cannot remain untouched by it. This will affect the airlines, hotels, travel portals and multiplex sectors as they are yet to recover from the losses incurred during the lockdown in the first and second waves of Kovid-19.
India allowed the arrival of international flights from December 15, except in 14 countries. But on Saturday the Prime Minister Narendra Modi during the meeting Omicron asked for a review of the decision held regarding the version. This is the reason why airline stocks are showing a decline.
Hotels, airlines shares fall
The shares of these sectors registered a fall for the second consecutive day since Friday. In the hotel sector, Indian Hotels was down 3.70 per cent at Rs 175.75, East India Hotels was down 5.77 per cent at Rs 119.95, Oriental Hotels was down 2.78 per cent at Rs 34.95. If we look at the shares of the airlines sector, InterGlobe Aviation (Indigo) is trading 2.03% down at Rs 1,840, SpiceJet is down 6.25% at Rs 70.50.
Shares of online travel booking portal Easy Trip were also down and trading at Rs 499.25, down 4.99 per cent. Railway travel online booking company IRCTC was also trading at Rs 778, down 5.47 per cent.
Fall in shares of multiplex companies
Multiplexes are open now but due to fear of Omicron variant of corona virus PVR is trading 1.40% lower at Rs 1372. Inox Leisure was trading 5.31 per cent down at Rs 357.20.
The investors of these companies are passing through a period of restlessness. Several European countries have decided to ban flights from South Africa, while some have already banned. The World Health Organization (WHO) has designated the Omnicron variant as the ‘Variants of Anxiety’.
Disclaimer: The knowledge provided here is for informational purposes only. It is important to mention here that investing in the market is subject to market risks. Always consult an expert before investing your money as an investor.
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