Cricket frenzy in India is at its peak as the ICC Cricket World Cup is underway. Indian cricket fans are rejoicing over India’s win against Australia in their opening match in Chennai on Sunday, and are eagerly awaiting the high-octane India and Pakistan clash, which is scheduled to be held in Ahmedabad on October 14.
During the epic battle weekend, hotel and airline stocks will benefit the most due to an increase in hotel and airline fares, according to a Jefferies report. The brokerage report stated that hotel rates are up by 150 per cent ahead of the cricket World Cup. It also said that within a few days, the rates increased 13 times and all the hotels in small towns were booked. According to the report, there has been an increase in hotel bookings, even in big cities.
Flight fairs were also hiked by 80 per cent, or five times ahead of the start of World Cup series.
Hotel rates on India vs Pakistan match day against a weekend after
Source- MakeMyTrip
Stocks in focus
According to Jefferies, Interglobe and Indian Hotels will be in focus ahead of the match.
Motilal Oswal is also bullish on India Hotels and InterGlobe Aviation, the parent company of IndiGo Airline.
According to Motilal Oswal, most hotels are expecting a 100 per cent occupancy during the October–November period. Besides the World Cup, these months will also witness a lot of festival holidays. Indian Hotels Company, which provides management services to various hotel chains, including Taj, Vivanta, Ginger, The Gateway, SeleQtions, and Trails, is expected to churn a good profit.
“Like the food and hotel industries, aviation is expected to benefit considerably from the upcoming Cricket World Cup in India. Interglobe Aviation Limited, popularly known as IndiGo, offers air transportation, pre-flight and post-flight cargo handling, and other allied services at several Indian and international airports,” the report read.
InterGlobe Aviation’s stock has gained over 4 per cent in the last five days since the ICC World Cup began, a sharp rise against Nifty 50’s rise of 0.14 per cent in the same period.
Indian Hotels’ stock has gained over 2 per cent in the last five days against Nifty’s rise of 0.14 per cent in the same duration.
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