Covid-19: Analysts dump diagnostic firms for multiplexes on solid outlook

Experts believe the current news cycle may keep the stock prices of related players volatile in the near term, but any fundamental or direct impact, in the long run, remains improbable.

Shares of multiplex and diagnostic companies were abuzz on Monday, albeit for opposite reasons, as India saw a surprise spike in Covid-19 cases. India reported 4,518 cases on the day, with Maharashtra reporting 1,494 fresh cases, the highest since February 19.

With precautionary measures like mandatory masks in public being reinforced, shares of Dr Lal Path Labs, and Thyrocare gained up to 5.6 per cent, while those of Inox Leisure and PVR dropped up to 5 per cent. In comparison, the benchmark S&P BSE Sensex ended 0.17 per cent down.

The recent uptick in cases and expectations of more precautionary