Street signs: More steam left in mkt, hospitality sector revival, and more

Hotel stocks are back in investor good books, with occupancies returning to pre-pandemic levels

stock market, women, woman, female, gender, workplace, markets, trading, nse, bse, sensex, nifty, rally
Analysts are positive on Indian Hotels Company and Lemon Tree Hotels
Sundar SethuramanSamie Modak
2 min read Last Updated : Jun 05 2022 | 10:38 PM IST
More steam left in mkt: Analysts

The benchmark indices have posted three consecutive weekly gains. If analysts are to be believed, there is more steam left in the market. This could even take the Nifty to 17,000 levels. The VIX cooling off, incessant selling by foreign portfolio investors in India subsiding, and stable global cues are some key positives propelling the markets. “The Nifty has finally moved out of the three week’s range of 15,800-16,400 amid significant decline in volatility. Hence, we do not expect 16,400 to be retested in the short term, and declines remain a buying opportunity,” said a note by ICICI Direct. The Nifty ended last week at 16,584. The India VIX closed below 20, after climbing to above 25 levels in May.

Anchor lock-in to end for two IPOs

Shares of Campus Activewear and Rainbow Children’s Medicare will be in focus on Monday as the 30-day anchor lock-in period for these two stocks ends. In the past, shares of companies have come under pressure after the end of the lock-in period. Shares of Campus Activewear fell 5 per cent in Friday’s trade. According to Edelweiss, anchor investors hold 4.7 per cent of total outstanding shares of footwear firm Campus and 8.5 per cent in paediatric hospital chain operator Rainbow Children. Shares of Campus are currently up 16 per cent over its issue price of Rs 292, while Rainbow is down 13 per cent over its issue price of Rs 542.

Investors find comfort in hospitality

Hotel stocks are back in investor good books, with occupancies returning to pre-pandemic levels. According to market experts, in the third quarter of 2021-22, average room rates in leisure hotels across India recovered to pre-Covid levels and occupancies, while business hotels continued to lag behind. Although the arrival of the Omicron wave in December 2021 raised fresh concerns of a fourth wave, the relatively milder impact of the variant of the novel coronavirus led to a revival of sentiment in the hospitality sector. Analysts say recovery is expected to be buttressed by a decline in Covid cases, resumption of regular international flights in India from end-March, and wedding festivities held off on Omicron fears. Analysts are positive on Indian Hotels Company and Lemon Tree Hotels.
Contributed by Sundar Sethuraman & Samie Modak

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