Expect growth for aviation, hospitality sector to continue: PhillipCapital

Vineet Bhatnagar, MD, PhillipCapital from the sidelines of their hospitality, aviation and travel (HAT) conference spoke to CNBC-TV18 about the selected theme and the overall market outlook.

Overall for the market, he said higher liquidity aided by the domestic retail investors is driving it to new highs, adding that the market does look fairly valued now.

Talking about the theme of the conference, he said there is lot of optimism for the spaces.  The occupancy rate for the hotel industry according to a current trend report, across the country, is about 70-72 percent.

Similarly, the plant load factor for the aviation sector is around 85-90 percent, said Bhatnagar.  So there is good reason to believe that growth for the aviation will continue, he said.

There are lot of players in these segments that are unlisted, he said, adding that the hospitality industry changed dramatically between 2000 and 2017. According to him, the industry has gone through a strategic shift from an asset heavy model to asset light model.

Aside of the HAT spaces, there is a tremendous re-rating happening in the midcap space, he said. The shift to a formal business model will likely result in higher earnings visibility for some of the mdicaps and small caps, he added.

On the Futures and Options side, he said the September series will close higher and positively for the market.

For the entire discussion, watch video