Hotel stocks moved higher as investors cheered Finance Minister Nirmala Sitharaman's push for the tourism industry in the Budget 2023.
Sitharaman emphasised on the huge scope for job creation and entrepreneurship in the tourism sector. "Promotion of tourism will be taken up on mission mode with the active participation of states' convergence of government programs and public-private partnership," Sitharaman said in her budget speech.
The announcement triggered strong buying within hotel stocks, lifting shares of EIH, Indian Hotels Company, EIH Associated Hotels, Thomas Cook (India), Taj GVK Hotels & Resorts, Lords Ishwar Hotels, Oriental Hotels and Lemon Tree Hotels 2-8 percent higher.
The push will likely support the recovery for hotel companies hit hard by the coronavirus pandemic.
Sitharaman also allocated the highest-ever capital outlay at Rs 2.4 lakh crore for the railways. The capital expenditure push for railways is also seen aiding sentiment for tourism-related stocks.
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