Travel companies rally, lab & food hit

The news about a potent vaccine from global pharma giant Pfizer, along with Germany’s BioNTech, was a booster for hotel, airline and travel stocks.

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Most pharma stocks also witnessed selling during the session with BSE’s healthcare index closing 3.6% down on the day.
Mumbai: The news about a potent vaccine from global pharma giant Pfizer, along with Germany’s BioNTech, was a booster for hotel, airline and travel stocks. However, the same news adversely hit stocks like Info Edge (which owns a majority stake in food delivery major Zomato), Jubilant Foodworks (the franchise for Domino’s in India), and pathology laboratory chains like Thyrocare, Dr Lal PathLabs and Metropolis Healthcare.

On the one hand, while an effective vaccine raises the chance for people to travel and go about freely, it would also limit demand for products and services of companies that benefited from the work-from-home months, market players said. In Tuesday’s session, Indian Hotels, which runs the Taj group of hotels, rallied nearly 15%, while Lemon Tree Hotels closed 10% higher. Among the airline stocks, Interglobe Aviation, which runs the country’s largest airline IndiGo, closed 9.1% higher, while IRCTC was up 4.7% at close. Tuesday’s rally also brought some cheer among shareholders of movie chain major PVR and gambling operator Delta. Both types of businesses are expected to see a turn in fortunes if people are allowed to move out freely, analysts feel. PVR closed 5.4% higher, while Delta was up 3.7%.
Travel cos rally, lab & food hit
Among the laggards due to the vaccine news were Thyrocare (down 8%), Dr Lal PathLabs (lost 6.4%) and Metropolis (down 5.2%). Market players feel launch of a vaccine for the masses will lead to lesser demand for services from these companies, and hence the selling. Most pharma stocks also witnessed selling during the session with BSE’s healthcare index closing 3.6% down on the day.
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