Shares of travel, tourism, and hospitality companies rose up to 10% on Monday, as India and Pakistan reached a mutual agreement on Saturday to halt hostilities across land, air and sea. This provided a shot of confidence to financial markets that had been treading cautiously in recent sessions.
Calm prevailed in the border regions of Punjab, Jammu & Kashmir, and Rajasthan following the ceasefire. Indian Foreign Secretary Vikram Misri urged Pakistan to uphold the commitment seriously and responsibly. He added that Indian armed forces would firmly respond to any future violations along the Line of Control or the international border.
The BSE Sensex jumped by 2.99%, or nearly 2,300 points intraday at 81,830.65, and NSE Nifty rose 3.04% intraday to touch 24,737.80.
SpiceJet Ltd. and Thomas Cook (India) Ltd. led the sectoral advance, both rising over 10% after it plunged over 6% during intraday trade on Friday. InterGlobe Aviation Ltd.—the operator of IndiGo airlines—gained nearly 10%, as concerns over travel disruptions and cancellations decline.
Online travel aggregators were also hit. EaseMyTrip Ltd. rose 6.46% to Rs 12.52 per share, while Yatra Online Ltd. traded more than 5% higher. Hotel operators Chalet Hotels Ltd., Lemon Tree Ltd., and ITC Hotels were up 6.71%, 6.74% and 8.50%, respectively. EIH Ltd. and Indian Hotel Ltd were also trading higher.
Additionally, 32 airports across India that were temporarily shut under Operation Sindoor and heightened military activity, have now been re-opened, a top DGCA official told NDTV Profit.
Most of these tourism-linked stocks, including IndiGo, were impacted as tensions between India and Pakistan rose on the border.
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