After auto sector, hope for a GST rate cut is now building up in the Indian hospitality sector.
Stocks like Indian Hotels, Hotel Leela, Taj GVK, Royal Orchids, EIH Associated, Lemon Tree, EIH and Oriental Hotels are up in the green. Hotel Leela is the best performer in the sector, rising 15%.
There is unconfirmed news that at the Goods and Services Tax (GST) Council meet, scheduled for 20th Sept, there be a rate cut announced for five-star hotels, to give a boost to the tourism industry.
H2 is usually the best period for hotels, accounting for 75% of the profits earned in a year and if this rate cut does come in, it would be like icing on the cake.
All this is hearsay and will get confirmed only on the 20th.