Air India crash rattles hotel and ticketing stocks, as investor confidence wavers
Kranthi Bathini from WealthMills Securities said the decline in travel-related stocks is a short-term effect of the Air India crash. "In the longer run, we expect resilience in air travel. The travel and hospitality industries should do well over the medium to long term," he noted.Further, Bathini doesn't see any major fundamental impact from this one incident. Long-term investors, he said, can continue holding these stocks unless they no longer find them attractively priced. 'If the investor is a long-term investor, they can hold on to the stocks until and unless they don't find any valuation comfort in the particular stock,' he said.HOTEL COMPANIES ALSO FEEL THE HEATHospitality stocks followed the downward trend. Shares of Indian Hotels Company (IHCL), the group behind the Taj Hotels, fell by 1.35% to Rs 734.75. Chalet Hotels and Lemon Tree Hotels also saw declines of about 1% and 0.03%, respectively.advertisementEven Schloss Bangalore, the newly listed company that operates Leela Hotels, saw its stock dip by over 3% to trade at Rs 400.10.AIRPORT OPERATORS AND AIRLINES FEEL THE PINCHThe impact wasn't limited to hotels and airlines. Adani Enterprises, which runs the Sardar Vallabhbhai Patel International Airport in Ahmedabad, also saw its shares fall by more than 2%, trading at Rs 2491.40. The airport has been shut for operations following the crash.Similarly, GMR Airports' shares declined by around 1%. Airline stocks weren't spared either. Shares of IndiGo and SpiceJet also witnessed a decline in their share prices as investors weighed the possible impact of the crash on the sector.INVESTORS TURN CAUTIOUS AFTER CRASHThe crash involved a London-bound Air India flight carrying more than 200 passengers, which went down in a residential area near the Ahmedabad airport. Tragically, nearly all 242 people on board lost their lives.The incident has reignited concerns over flight safety, prompting a cautious stance from investors and sending several sector stocks lower in early trade.Must Watch
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