Travel and Hospitality Shares Decline for Second Day, Led by IndiGo and IHCL

Travel and Hospitality Stocks Extend Losses Amid West Asia Crisis

Travel and hospitality shares continued their downward trend for the second consecutive session on Tuesday, with stocks such as SpiceJet and Indian Hotels Company Ltd falling up to 5 percent. The decline in these stocks came after Prime Minister Narendra Modi appealed to people to limit foreign travel and cut discretionary spending amid the West Asia crisis.

The Prime Minister's appeal raised concerns over the outlook for travel and hospitality companies, as lower discretionary spending could affect demand in the sector. Modi's appeal came as a fragile ceasefire held in West Asia, a region that accounts for a significant portion of India's crude oil and gas imports. The conflict has disrupted global supply chains and pushed up oil prices.

The decline in travel and hospitality stocks can be seen in the following table:

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The Prime Minister's appeal also included suggestions to reduce purchases of gold, limit petroleum consumption, and avoid destination weddings abroad. He encouraged greater use of digital technology, including virtual meetings and work-from-home arrangements, and stressed the need to prioritize these measures in government and private offices. The government is making efforts to minimize the impact of the crisis on citizens, and Modi called for public participation in dealing with the situation.