Multiplex, hotel stocks hit 52-week low on extension of lockdown
BusinessToday.In May 18, 2020
Shares of multiplex and hotel operators cracked up to 15 per cent, hitting their respective 52-week low on the BSE on Monday, amid extension of the lockdown and disappointment with the stimulus package. The central government on Sunday extended the nationwide lockdown by two more weeks till May 31 to prevent the spread of coronavirus.
Weighed down by the development, shares of multiplex operator PVR plunged 12.86 per cent to hit 52-week low of Rs 743.35, while Inox Leisure stock tumbled as much as 15.29 per cent to touch a new low of Rs 163.7.
In a similar trend, Tata Group's Indian Hotels, Lemon Tree, Wonderla Holidays, Benaras Hotels, Chalet and EIH from the hotel sector also touch their fresh 52-week low.
In comparison, the S&P BSE Sensex was down 2.41 per cent, or 748 points, at 30,349 at 2:15 PM.
The aviation stock also witnessed surge in selling as government's Rs 20 lakh crore economic package failed to deliver immediate liquidity support to the airlines, which has hit turbulence due to suspension of commercial flights. In wake of the extended lockdown in India, Directorate General of Civil Aviation (DGCA) has extended prohibition on domestic passenger flight operations till 11:59 pm of May 31, 2020. All commercial passenger flights have been suspended in India since March 25, when the lockdown was first imposed to contain the spread of novel coronavirus.
Weighed down by the development, shares of InterGlobe Aviation, parent firm of IndiGo, slipped 13.56 per cent to Rs 850.30 on the BSE, while SpiceJet was locked in the 5 per cent lower circuit band at Rs 43.45 apiece.
Finance Minister Nirmala Sitharaman on May 16 announced slew of measures for the aviation sector but none of these may provide immediate relief to the crisis-hit airline companies. Most of domestic aviation companies such as IndiGo, GoAir and SpiceJet, have been forced to cut salaries or send staff on leave without pay due to suspension of services in wake of coronavirus pandemic.
By Chitranjan Kumar