Hotel, airline stocks zoom on India-Pakistan ceasefire; IndiGo, Indian Hotels, others surge up to 10%

According to estimates by airlines, around 450 domestic flights were cancelled as a precautionary measure on May 8, with the government shutting down more than 20 airports across north-west India, including Jammu, Srinagar, Leh, Amritsar, and Shimla.

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Shares of airline and hotel companies rebounded sharply on Monday after India and Pakistan on Saturday announced reaching an understanding to stop all firings and military actions on land, air and sea, with effect from 5 pm that day.

The market responded positively to the development in today's trading session, following days of conflict between both the nations.

The move followed India’s launch of ‘Operation Sindoor’ on May 7 to target terror infrastructure in Pakistan and Pakistan-occupied Kashmir, in response to the Pahalgam terror attack.

Investor sentiment received an additional boost after the government on May 12 allowed operations at 32 airports, including those in border areas of Jammu and Kashmir and Punjab, that were temporarily shut down following the military conflict with Pakistan. The Notice to Airmen (NOTAM) comes two days after the two sides agreed to stop military action.

Govt orders reopening of all 32 airports after India-Pakistan ceasefire

Shares of InterGlobe Aviation Ltd, the parent company of India’s largest airline IndiGo, jumped as much as 9.72 percent to an intraday high of Rs 5,597 on the NSE. The stock opened with a 6.28 percent gain, reversing a four-day losing streak driven by geopolitical tensions.

SpiceJet shares also rallied, climbing 10.44 percent intraday to Rs 47.69. The counter opened higher by nearly 7 percent.

The rally reflects expectations of increased travel and tourism activity following the de-escalation, with aviation and hospitality sectors seen as key beneficiaries.

Hotel stocks mirrored the upbeat mood. Indian Hotels Company Ltd, which operates the Taj chain, surged 8.38 percent to touch a high of Rs 779 after opening 6 percent higher.

Shares of ITC Hotels hit Rs 198.50, up 8.5 percent, while Lemon Tree Hotels rose over 6 percent to trade at Rs 137.64. Chalet Hotels and EIH Ltd gained up to 7 percent in intraday trade.

The equity benchmarks also rebounded sharply on Monday, with the Sensex rallying over 2,300 points and the Nifty climbing past the 24,700-mark, as easing geopolitical tensions between India and Pakistan and positive US-China trade talks lifted investor mood. This is the biggest single-day rise in last 11 months.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.