Market check's in to hotel stocks
Hotel stocks are on a run! All the three top notch listed hotels – Indian Hotels, EIH and Hotel Leela have been hitting new highs since 19th May. Today too, EIH has hit a new high at Rs.91, Hotel Leela at Rs.24.50 and Indian Hotels is also up significantly, up over almost 3%.
This sudden love for hotel stocks is again thanks to Modi. The market seems to be scrutinizing each and every pointer in the BJP manifesto and accordingly, reacting to stocks. The manifesto has indentified tourism as a major source of employment generation and forex earner. And it plans to create some 50 tourist circuits which will be built around India specific themes across the country. Also given the way in which Modi changed the scene for tourism in his home state, Gujarat, there is hope that the same would now get replicated across India. Moreover cyclically, the hospitality sector is poised for a turnaround; thus all over currently, the sector is bursting with a sense of optimism.