IndiGo, IHCL, Lemon Tree, PNB, SBI & BoB: Mitesh Panchal's take on these 6 stocks as geopolitical tensions rise

Sebi-registered analyst Mitesh Panchal stayed positive on the aviation and tourism sectors even as tensions between India and Pakistan continued to escalate. "We have a completely contra view on the aviation and tourism and hospitality sectors. I think in the absolute uncertainty like this, both of these spaces will perform very well. You may see a correction going forward to the tune of 2 to 5 per cent but that is going to be an excellent buying opportunity. Sooner than later, dust will settle down and both these sectors will spike up. We are of the view that Interglobe Aviation (IndiGo's parent) in the Rs 5,100-5,300 range is a good buy. We are looking at a target of Rs 5,800-6,000 sooner than later," the market expert told Business today on Thursday.

"Indian Hotels Company Ltd (IHCL) and Lemon Tree Hotels Ltd are also looking very interesting at the current levels. So, I think these sectors will witness a 3 to 5 per cent correction from the present levels. One should 'buy-the-dip' with a one-to-three-month view," Panchal added.

In response to a query on select stocks from the banking space, he said he won't pick shares of Punjab National Bank (PNB), SBI or Bank of Baroda (BoB) as of now. "They probably need a strong breakout on monthly charts. So, we'll avoid till any significant reversal comes. Then only we will consider buying, otherwise the banking space will go for a consolidation period for a much longer period of time," he stated.

Meanwhile, the 30-share BSE Sensex pack slipped 412 points or 0.51 per cent to close at 80,334.81 and the broader NSE Nifty index moved 141 points or 0.58 per cent to end at 24,274. Broader indices tanked up to 1.95 per cent.

Fear index India VIX, which measures market volatility, spiked 10.21 per cent to 21.01, as per NSE data. The index measures expected market volatility based on Nifty50 index options contracts. A rise in India VIX indicates that investors anticipate higher uncertainty or risk over the short term (30 days). When the volatility index rises, stocks usually tend to fluctuate, making it difficult to predict future market movements.

Investor wealth, as suggested by the BSE market capitalisation (m-cap), fell around Rs 5 lakh crore to Rs 418.50 lakh crore compared with a valuation of Rs 423.50 lakh crore recorded in the previous session. Frontline stocks such as HDFC Bank, Bharti Airtel, Mahindra & Mahindra (M&M), ICICI Bank, Eternal (formerly Zomato), Maruti and SBI contributed to the fall today.

Last night, the S-400 Sudarshan Chakra air defence missile systems of the Indian Air Force (IAF) were fired against Pakistani targets moving towards India. The targets were successfully neutralised in the operation. On the intervening night of May 7-8, Pakistan attempted to engage a number of military targets using drones and missiles in northern and western India.