Hotel stocks were up 4-15% in early trade on Monday after the cut in corporate taxes and GST rates.
Chalet Hotels, Hotel Leela, Indian Hotels, Kamat Hotels, Lemon Tree Hotels, Mahindra Holidays, Oriental Hotels, and Royal Orchid gained in moring trade.
Shares of ITC were also up by over 8%.
The government cut the corporate tax rate from 34% to 25.17% (inclusive of surcharge and cess) effective FY20. The minimum alternate tax rate was reduced from 18.5% to 15% on Friday.
Further, several revisions were made to the goods and services tax (GST) rates following the 37th GST Council meeting for the promotion of the tourism sector on Friday.
The Council approved tax rate cuts on rooms with a tariff of Rs7,500+ to 18% and for those with tariff below Rs7,500 to 12%. GST on room tariffs below Rs1,000 has been scrapped.
Chalet Hotels Ltd is currently trading at Rs330 up by Rs19 or 6.11% from its previous closing of Rs311 on the BSE.
Indian Hotels Co Ltd is currently trading at Rs160.40 up by Rs12.15 or 8.2% from its previous closing of Rs148.25 on the BSE.
Kamat Hotels (India) Ltd is currently trading at Rs41.45 up by Rs2.9 or 7.52% from its previous closing of Rs38.55 on the BSE.
Lemon Tree Hotels Ltd is currently trading at Rs58.50 up by Rs4.7 or 8.74% from its previous closing of Rs53.80 on the BSE.
Royal Orchid Hotels Ltd is currently trading at Rs91.50 up by Rs9.6 or 11.72% from its previous closing of Rs81.90 on the BSE.