Hotel stocks surge upto 8% as FM announces tourism promotion push

1 Feb 2023 , 12:58 PM

A veritable surge in the stocks of the hospitality industry was noticed, with an impressive rally of up to 8%, following the announcement by Union Finance Minister Nirmala Sitharaman in her latest budget speech, where she declared the government’s intent to undertake the promotion of tourism with an air of mission and purpose.

Finance Minister Nirmala Sitharaman announces a mission-mode approach for tourism promotion through state participation, government program convergence, and public-private partnerships in her budget 2023-24 presentation.

Shares of Indian Hotels (+8.07%) rallied as much as 8%, being the top hospitality industry gainer. Adding to the rally, EIH, an Oberoi group hotel, (+7.73%) jumped nearly 8%.

HLV’s (+6.80%) scrip surged about 7%, while Mahindra Holidays (+3.54%) gained over 3.5% so far in the day.

Lemon Tree Hotels (+5.49%) also scored a striking jump of about 7% with an intraday high of Rs81.90 in today’s trade.

ICICI Securities improved its rating on Indian Hotels from Add to Buy, with a revised SoTP-based target price of Rs399 per share (earlier Rs366).

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