J&K terror attack impact: J&K Bank, airline, hotel stocks trade lower as 26 tourists die in Pahalgam

Security has been heightened along the India-Nepal border in Sonauli in the wake of the terror attack

J&K Bank, airline, hotel stocks were trading lower on April 23, a day after 26 people got killed in a terror attack in Pahalgam in Jammu and Kashmir's Anantnag district.

Terrorists struck at a prime tourist location in Pahalgam in south Kashmir on Tuesday, killing at least 26 persons, mostly tourists, and injuring several others.

Security has been beefed up across the valley, especially at vital tourist spots.

At 11:10 am on April 23, SpiceJet shares were trading 1.6% lower at Rs 49 apiece while IndiGo shares were trading 0.5% lower at Rs 5,505 apiece.

Hotel stocks also faced selling pressure as part of the aftermath of the terror attack.

Shares of Lemon Tree Hotels fell over 2% on April 23 while those of EIH and Chalet Hotels were trading up to 1% lower.

J&K Bank shares were trading 9% lower at Rs 103.78 apiece. The stock could be reacting due to likely disruptions in operations in Jammu & Kashmir, where over 80% of its branches are located.

Earlier on April 23, Moneycontrol reported that travel agents started receiving cancellation requests for the upcoming travel plans to Kashmir.

"Due to the recent Pahalgam attack, I had to cancel all upcoming bookings for the next 4-5 months, and this will result in significant losses," said Kirti Agarwal, operations head of Chalo Ghumne Tours & Travel.

Many tourists have cancelled their hotel bookings, fearing for their safety, he said. "The attack has raised concerns about security in the region, impacting tourism and local businesses."

Hotel cancellations have surged in Pahalgam and some across Kashmir following the attack, noted Jyoti Mayal, Chairperson of Tourism and Hospitality Skill Council (THSC) and former president of TAAI (Travel Agents Association of India).

"The region's tourism-dependent economy will face financial losses as tourists cancel their trips. J&K economy grew at 7.06% in FY2024- 25, and tourism numbers were a record high. Rebuilding Kashmir's image as a safe destination will be a complex challenge," Mayal said.