Shares of multiplex chain operators PVR and Inox Leisure tumbled over 8 per cent on Monday as rising COVID-19 cases raised concerns over the pace of business growth. The move by the Maharashtra government, the worst affected state by the coronavirus, to impose restrictions and shut down cinema halls, theatres and multiplexes for public access spooked investors' sentiments.
PVR share price declined as much as 8.05 per cent to hit day's low of Rs 1,144.60 on the Bombay Stock Exchange (BSE). The stock of the company opened lower at Rs 1,179 against previous close price of Rs 1,236.80. The market cap of PVR plunged to Rs 6,978.54 crore amid surge in selling. On the volume front, 0.76 lakh shares changed hands over the counter as compared to two-week average of 1.17 shares.
In a similar trend, Inox Leisure shares fell 8 per cent to touch intraday low of Rs 256.60 on the BSE, against previous close price of Rs 279.05. The stock hit a high and low of Rs 270.65 and Rs 256.60, respectively.
Meanwhile, the BSE Sensex was trading 1,368 points, or 2.73 per cent lower at 48,661, while the NSE Nifty 50 was quoting at 14,529, down 337 points or 2.27 per cent.
The Maharashtra government imposed restrictions across the state to contain spread of the second wave of the coronavirus pandemic. As per the state government official, the restriction will be in place until further notice.
The cinemas, theatres and multiplexes have already taken massive financial hits as they remained shut following the nationwide coronavirus lockdown started in late March. They were allowed to reopen starting mid-October with limited capacity.